PROJECT REPORT OF SELECTED JOB CLUBS UNDER MPSC JC SCHEME new [EDocFind.com]

8/7/2019 PROJECT REPORT OF SELECTED JOB CLUBS UNDER MPSC JC SCHEME new [EDocFind.com]

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CONTENTS

PROJECT REPORTS OF Pages

1. Krishna Traders, Pudunagarm1-6

– Gem and Jewellery Work 2. Sanchoo Job Club, Kochara7-20

- Cement Products

3. Akshaya Job Club, Palakkad21-37- E center

4. Matrix Infotech, Malappuram38-50

- Computer training center5. 5 Star Net Café, Vandiperiyar

51-57- Internet Café

6. Akshaya dressed dry fish unit – Valiazheekkal

58-64- Cleaned dryfish unit7. Ozone carry bags, Vazhavara65-77

- Natural carrybags8. Sneha Handicrafts, Thamarassery78-91

- Handicrafts, flower, etc.9. Uravu Bamboo Club, Thrikkaippetta92-97

- Bamboo curtains10. Athira Dairy Farm – Anakkal 98-101

- Dairy Farm11. Aiswarya Vegetable farming – Malampuzha 102-108

- Organic Vegetable Cultivation



12. Hassen Timber Unit - Pudunagaram109-112- Timber Sales

13. Aiswaryam Mangoes – Muthalamada 113-117

- Mango Cultivation & Sale14. St. Marys Food Products, Anakkara

118-136- Food Processing

15. Mobile Spot – Malappuram 137-139

- Mobile Sales & Servicing16. Hawai Chappal – Kothamangalam 140-143

PROJECT REPORT

M/S Krishna Traders, Karattukulambu, Pudunagaram(P.O)

GEM AND JEWELLERY WORK

01. INTRODUCTIONBusiness performance of Gem and Jewellery sector, according to

the latest figures available in this industry in the last year has attaineda record turnover, registering a growth of more than 30% over theprevious financial year. Continuing this scintillating performance Gemand Jewellery have grown further and the industry has emerged yetagain a front runner in this sector. New industrial policies of Central

and state governments are expected to be a Mile stone for the growthof small scale industries in the country. India being a developingcountry our economic growth mainly depended on growth of industriesespecially small-scale industries.

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Unemployed youth are coming forward to set up micro and smallenterprise for seeking self employment with institutional finance.

This is a novel concept forming multi purpose job clubs forstarting a micro enterprise for manufacture of jewellery to increase theincome level of club members. All the members of the captioned clubsare enterprising and industries.

02. BIO DATA OF THE CLUB MEMBERS

1. Rathnakumari.VW/o Subramnian

VirinjipadamPudunagaram

2. Suresh.AS/o Late AppayiChattikkadampadamPudunagaram

3. Bindu.MW/o RadhakrishnanKarattukulambuPudunagram

4. Unnikrishnan.CS/o Late. ChamiPalakkampadamPudugagram

5. ManikandanS/o Late MurukanPanamkave veeduPattanchery(Po)

0.3. LOCATION OF THE UNIT

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The unit is to be located at door. No. VIII/242 Pudunagram Gramapanchayath, Chittur Taluk.

0.4. FINANCIAL CAPACITY/ASSISTANCE FROM EMPLOYMENTDEPARTMENT

Club member’s will contribute a minimum of 10% of project cost,Employment Department will assist the club by way of subsidy to thetune of 25% of the project cost of maximum Rs. 2 Lakhs which ever isless.

05. SCOPE OF THE ACTIVITY India is the largest consumer of gold, processing quantity 800

tones annually. It has a strong domestic industry which has honed theskill of jewellery making over the ages. Today the jewellery industryincorporates the latest in machinery and design development and hasa savvy marketing thrust. At present produces handmade andmachine made plain and studded. Jewellery for the mass market; its

quality designs and management are on a par with world market andstandards. The government has also recently taken the steps tocommence hall marking of gold. All these aspects of jewellery makingare advancing towards growth and development this industry. Thecaptioned club members are well experienced in this tune of activity. 06. INFRASTRUCTURE FACILITIES

All the infrastructure facilities are available to the unit.

07. AVAILABILITY OF RAW MATERIAL

Raw materials are available without any difficulty.

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08. ANNUAL PRODUCTION CAPACITY

Expected annual production capacity is 16.800 Kg. Per year.However the Unit is expected to utilize 70% of its installed capacity

during the first year of its operation.

09. PROJECT PARTICULARS

(a)Land(b)Building Rental @ Rs. 1000/- per month.(c) Machineries and equipment Rs. 175500/-(d) Man power requirement.

Sl. No. Category Number MonthlySalary

MonthlyAmount

AnnualAmount

1 Workers 5 6250 13250 159000Total 13250 159000

10. PROJECT COST

(a) Fixed Capital

Land and building: RentedMachinery : 175500

Rs. 175500

(b) Working Capital

20 days working capital Rs. 663000

Total Project cost

A. Fixed capital Rs. 175500(b) Working capital Rs. 663000

Rs. 838500

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Say Rs. Rs. 838000

Means of finance :

Own fund : Rs. 83800Bank Loan Rs. 754200

Rs. 838000

ANNEXURE I

(Annual requirement of raw material for installed capacity)

16.800 kg. Gold @ 1000000/-per Kg. Rs. 16800000Chemicals & Silver and cost etc Rs. 30000

Total Rs. 16830000

During the first year of operation the unit with utilize only70% of the installed capacity therefore the annual requirements of raw materials for the first year of operation will be Rs. 11781000.

ANNEXURE – II

(Annual requirements of working capital 70% capacityutilization)

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(a)Raw materials as per annexure I Rs.11781000

(b)Administrative and personal……… Rs. 159000

(c) Utilizes and contingences for one month(d)Postage and Telephone 1000(e) Travelling expenses 1000

Rent 1000Electrical charge 500Miscellaneous 500 4000Total working capital A+B+C Rs. 11944000

Working capital for one month Rs. 995333Say Rs: 995000

Working capital for 20 days Rs. 663333Say Rs. 663000

ANNEXURE – III

List of machinery and equipment

Quotation attached

ANNEXURE IV

Annual production statement 70% capacity utilization income @ Rs. 1075000/- per kgfor 11.760 Kg. Rs. 12642000

It can safely concluded that the venture will be a grand success and

can also repay all its obligation to bank the profitability and cash flowstatement appened reveals that it can also set up contingent fun forfuture expansion.

The scheme is technically feasible and economically viable.

7



M/S Krishna Traders, Karattukulmbu,

Pudunagaram

Profitability Statement for 5 years (Rs. In “000”)

CapacityUtilization

1 st

year2 nd

year3 rd

year4 th

year5 TH

YEAR70% 75% 80% 85% 90%

A. Sales income 12642 13545 14448 15351 16254B. ExpensesRaw materials 11781 12623 13464 143.05 15147Salary & Wages 159 175 193 212 233Electricity charges 6 6 10 10 15Rent 12 12 12 12 12Repair charges 2% 4 4 4 5 5Insurance 1% 2 2 2 2 2Depreciation onmachinery 10%(WDV)Miscellaneousexpense

5 5 5 5 5

Total 11987 12843 13704 14563 15429

(A-B) gross profit 655 702 744 788 825Interest on BankLoan @ 12% 91 72 54 36 18Net Profit 564 630 690 752 807Income Tax 136 156 174 193 209Net Profit after Tax 428 474 516 559 598

Cash flow statement (Rs. “000”)

1 st

year2 nd

year3 rd

year4 th

year5 th

yearOpening balance 139 428 557 477Net Profit as perprofitabilitystatement

428 474 516 559 598

Depreciationadded back

18 16 14 12 10

8



Subsidy fromemploymentdepartment

-200 - - -

Gross cash flow 440 829 958 1128 1085Application of fund

Repayment of loan

151 151 151 151 150

Drawings 150 250 250 300 375Total 301 401 401 651 525Closing balance 139 428 557 477 560

PROJECT REPORT OFSANCHOO JOB CLUB, KOCHARA.P.O

CEMENT PRODUCTS

PROJECT AT A GLANCE

Name of Unit SANJO INDUSTRIES (JOB-CLUB)

Address Kochara.P.O.,

Idukki District

Name and Address of Promoter Sanjo Job Club Kochara P.O

Name of Product Cement Products

Constitution Partnership

Cost of Project

Fixed Capital Rs. 6.10 Lakh

Working Capital Rs. 3.90 Lakh

Total Rs. 10.00 Lakh

Means of Finance

Bank Loan Rs. 7.00 LakhOwn Fund Rs. 1.00 Lakh

Subsidy Rs. 2.00 Lakh

Total Rs. 10.00 Lakh

Name of Bank Union Bank of India Ltd. Vandanmedu Branch

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Capacity 4.50 Lakh Bricks 1 Lakh paving block

Capacity Utilisation 80%

Employment 6 Nos.

Turnover (First Year) Rs. 43.09 Lakh

Net Operating Profit Rs. 4.12 Lakh

INTRODUCTION

This scheme pertains to the techno economic feasibility of the proposed small

scale Industrial Unit at Kochara to be set up for the manufacturing of Cement Hollow

Bricks, Solid Bricks and paving blocks with M/S SANJO INDUSTRIES (JOB-CLUB)

Kochara.P.O., Udumbanchola Thaluk, Idukki District as the promoter.

The Unit will be known as Sanjo Industries Kochara. With the development of

rural economic and in flow of gulf money and other sources in rural areas, the demand

for housing has increased considerably. The demand for major items of the material used

in the construction work has gone up also considerably. The Government and other

financing institutions have envisaged separate programmes for house building activities

for both low income and high income group of families by providing assistance under

liberal terms and conditions. Many public sector undertakings and banks are also

providing loans to employees for the construction of residential buildings.

Government have also declared house construction programme as an Industrial

activity in the country. Therefore there is very good hope for setting up a number of

industrial unit in Kerala, which will produce different size of Concrete Products.

Similarly with the emergence of lower income group of families as an economically self supporting populations, Kerala stands as a very good market for the supply of varieties of

building construction materials like Hollow Blocks are high durability, comprehensive

strength and low water absorption etc. Hence it is proposed to set-up this Industrial unit

equipped with the necessary machines for the manufacturing of Concrete Blocks at

Kochara in Idukki District.

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PROMOTER

As already stated M/S Sanjo Industries Kochara is promoted by a multi-purpose

job club constituted under the self Employment Programme of National Employment

Service (Kerala) through the District Employment Exchange, Idukki.

MARKET POTENTIAL

As is illustrated above, the product of this unit will enjoy very good market in this

locality and outside. The concept of making concrete blocks, Solid Blocks and burntbricks by engaging skilled and unskilled labour at the worksite. Hence on the

commercial ground, by taking into account the various aspects of the hollow blocks

industry. Hence marketing of these products will never be a problem for the next several

years to come; moreover, there is a good growing demand for these products.

LOCATION OF THE UNIT

The unit is located in a plot measuring 20 cents in Ankkara Village by the side of

Chettukuzhy, Pazhaya Kochara road. The job club has already arranged the land for an

amount of Rs. 79,500/-

INFRASTRUCTURAL FACILITES

All infrastructural facilities to run this unit in the proposed site are available. 3

phase line is running through the side of the plot and electricity supply to the proposed

capacity of motors is going to allot by the K.S.E.B. authorities and the unit is going

arrange diesel engine for the uninterrupted power supply. Water is available in the site

for the use of workers and for other amenities. Transport and communication facilities

are already available in the site. Hence all the infrastructural facilities are available for

the implementation of the project.

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RAW MATERIALS

The main raw materials required are cement, granite chips and granite powder.

These are available in reasonable price at required quantity and without difficulty.

KNOW HOW AND PROCESS OF MANUFACTURE

The know-how for the manufacture of concrete Blocks is very simple. The

manufacturing process also does not require high technical expertise. An experienced

operator of the Block making machine will be able to operative machine to provide

maximum efficiency in the Block making process. Cement, granite, chips and granitepowder are stocked in the concrete mixing machine and watering. Then mixing with the

help of machine. The raw concrete block which are rested for 6 to 24 hours. After

wetting with water dried the blocks for required number of days (usually for 8 to 10 days)

depending upon the weather conditions. The dried blocks are carried to the outside yard

of plant properly arranged. While storing the output, only a few numbers of blocks may

be found to small scrap on the edges of the blocks. These sizes are storing for second

quality blocks and balance are quite good and storing and therefore saleable. These types

of concrete blocks will be high durability and comprehensive strength and low water

absorption than wire cut bricks.

FINANCIAL ASPECTS OF THE UNITLAND

The Promoter has already purchased 20 cents of land at Kochara Anakkara

Village. The land ideal with all infrastructural facilities.

BUILDING

Office cum cement godown, shop and work shed building are to be constructed

for the unit. As per the estimate, the expenditure under this head worked out at

Rs. 2,00,000/- . This also includes the cost of construction of storage tank.

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PLANT AND MACHINARY

The main machines required for the unit are Block making machines, paving

block machines mixer machines with motors and moulds. M/S Sadhana Industries

Kokkalai, Thrissur is agreed to supply the machinery for the unit. The cost under thishead including electrification and erection charges estimated at Rs. 3,00,000/-

(Annexure III)

MISCELLANEOUS ASSETS

The furniture and equipments required for the unit are office table, almira and

chairs. Impliments like shoverl, spade etc, is also included under this head. The cost

under this head estimated at Rs. 15,000/-

PRELIMINARY EXPENSES

Miscellaneous expenses like T.A., Registration and license fee, Charge for the

preparation of project report, miscellaneous expense for getting loan from bank etc., are

included under this head and are estimated at Rs. 15,500/- Bank charges includes Rs.

10,500/- being the 1.5% of the Loan 7,00,000 * 1.5/100 as credit guarantee Fund Trust

Corporation premium.

TOTAL FIXED CAPITAL Rs. 6,10,000/-

WORKING CAPITAL REQUIREMENT

The total working capital requirement of the unit for the production of solid

cement block, concrete hollow bricks and paving block comes to Rs. 3,90,000/- The

unit’s working capital requirement is provided in annexure VI.

COST OF PROJECT & MEANS OF FINANCE

The total cost of project is Rs. 10,00,000/-. The details are provided in

annexure VII.

SCHEDULE OF IMPLEMENTATION

13



The various activities such as construction of building, recruitment of staff,

availing loan from bank, erection of machinery, electrification etc. are to be done for

implementing the scheme. Considering the usual duration for the various activities, the

project is expected to take 5 months for commissioning.

REPAYMENT OF LOAN

The loan is proposed to be repayed in 5 years (60 of monthly installments)ASSUMPTIONS

The statement of production and profitability is based on the following

assumptions.

1. Number of working days 300

2. Number of shift single3. Capacitya. Solid Blocks 1,50,000b. Hollow Blocks 3,00,000c. Paving Blocks 1,00,000

4. Capacity utilization 80%5. Depreciation

a. Building 10%b. Machinery 10%

6. Repairs and maintenance 2% on fixed assets7. Insurance 2% on fixed assets8. Interest on bank loan 13.5%9. Preliminary Expenses has not been written off for computation purpose10. Possible changes in prices on account of inflation have been ignored.11. Administration expenses 1% on sales12. Selling expenses 2% on sales

CONCLUSIONM/s SANJO Industries Kochara P.O. is proposed to start a Cement Bricks, paving

block unit at Kochara in Idukki District. It will be a partnership concern. The total costof the project is Rs. 10.00 lakh. The promoters propose to avail a loan of Rs. 7.0 lakhfrom the Union Bank of India, Vandanmedu branch. The security for the loan is theassets acquired by the job club by avaiking the loan from the bank. No collateralSecurity is offered by the job club and bank the club intend to register with the creditguarantee Fund Trust Corporation for a period of 5 years. The 1 st year premium will be1.5% of the bank loan and 0.75% for the maximum period. The promoter’s contributionis Rs. 1.00 lakh.

The scheme is technically feasible and economically viable.

1. Siby JosePlamottil (H)

14



Uppukandom P.O2. Joji Mathew

Kanayankal (H)Kochara.P.O

3. Binoy Thomas

Pottankulathu (H)Uppukandom .P.O4. T.C. Rejimon

Thayil (H)Kochara. P.O.

LIST OF ANNEXURES

I. LIST OF MEMBERS

II. LOCATION DETAILS

III. DETAILS OF MACHINARY & EQUIPMENTS

IV. RAW MATERIAL REQUIREMENTS

V. EMPLOYMENT & REMUNARATION PATTERN

VI. WORKING CAPITAL REQUIREMENTS

VII. COST OF PROJECT AND MEANCES OF FINANCE

VIII. ANNUAL SALES REALISATION

IX. PRODUCTION AND PROFITABILITY STATEMENT

X. ANNUAL CASH ACCRUAL STATEMENT

15



ANNEXURE I

SANJO INDUSTRIES (JOB-CLUB)

KOCHARA

LIST OF MEMBERS

Sl. No. Name Address Age Qualification NativeDistrict

Name of Father

1. Sibi Jose Plamoottil

Uppukandam

29 S.S.L.C Idukki Jose

2. Joji Mathew Kanayankal

Kochara P.O.

34 S.S.L.C Idukki Mathew

3. Binoy

Thomas

Pottankulathu

Uppukandam

35 BA Idukki Thomas

4. T.C.Rejimon Thayil

Kochara P.O.

34 9 th Standard Idukki Chacko

ANNEXURE II

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LOCATION DETAILS

1. District : Idukki

2. Sub District : Kattappana

3. Taluk : Udumbanchola

4. Kara : Kochara

5. Village : Anakkara

6. SRO : Anakkara

7. SY No. : 23/1-9

8. Nearest Town : Kochara9. Post Office : Kochara

10. Nearest Police Station : Vandanmedu

11. Panchayath : Vandanmedu

Boundaries

East : Property of Ambiyil Johny

South : Thodu

West : Property of Siby Jose

North : Old Kochara – Nettithozhu Road

ANNEXURE IIIDETAILS OF MACHINARY & EQUIPMENTS

17



Sl.No. Description Qty. Rate Rs. Amount Rs.

1. Electrically operated Hydraulic typehollow block making machine (Total 5

HP Motors) with three types Rams &

Moulds 1 1,50,000.00 1,50,000.00

2. ¾ Bag Capacity Stand type Concrete

Mixing Machine with 3 HP phase

motor 1 50,000.00 50,000.003. Trolly fitted with fiber wheel 2 3,000.00 6,000.004. Electrically operated Double Vibrator

type Block making machine with

motor, without die sets. 1 41,000.00 41,000.005. Paving Block Die Set – 2 cavity

V.A.T 4% for 1,2,3,4,5 4 6,000.00

24,000.002,71,000.00

10,840.00

TOTAL 1,81,840

8. Electrification 15,000.00

9. Erection Charges

GRAND TOTAL

3160.00

3,00,000.00

ANNEXURE – IV

RAW MATERIAL REQUIREMENTS

The installed capacity of the unit is detailed below.

18



Cement Solid Block : 1,50,000 Nos.

Concrete Hollow Blocks : 3,00,000 Nos.

Paving Block : 1,00,000

Total 5,50,000 Nos.

Monthly requirement of raw material at 80% capacity utilization.

Item Quantity Rate (Rupees) Amount (Rupees)Cement 456 bag 240 1,09,440Granaite Chips 35 load 3,250 1,13,750Rock Powder 17 load 1,250 21,250

Total 2,44,440

ANNEXURE-VEMPLOYMENT AND REMUNARATION PATTERN

Sl.No. Category Nos. Wages/Salary(in Rupees)

1 Supervisory/(Self Employed) 1 3,0002 Office Clerk (Self Employed) 1 3,0003 Workers (Piece rated labour) 4 44,000

Total 6 50,000

In the prevailing labour charge, the piece rated labour charge for the production of one

brick is Rs.1.25/- and paving block is Re.1/-

OTHER EXPENSES

Electricity Charges 1,760

General Expenses 3,800

Total 5,560

Total recurring expenses per month 300,000ANNEXURE-VI

WORKING CAPITAL REQUIREMENTS

Sl.No. Item InventoryPeriod

Amount

1. Stock of raw material 2 week 1,22,220/-

19





No. of shifts Single

Installed Capacity 5.50 Lakh Nos.

Capacity Utilisation (1 st year) 80%

Rs. In lakh

43.09A. TURN OVER

B. COST OF PRODUCTION

Raw material 29.33

Labour Charge 6.00

Insurance 0.10

Depreciation 0.50

Repairs & Maintenance 0.10

Other expenses 0.67

TOTAL 36.70

C. GROSS OPERATING PROFIT (A-B) 6.39

D. Financial Expenses

Interest on loan 0.95

E. Administration Expenses 0.44

F. Selling Expenses 0.88

G. Total Financial, Administration &

Selling Expenses 2.27

H. Net Operating Profit before Tax (C-G) 4.12

ANNEXURE-X

ANNUAL CASH ACCRUAL STATEMENT AT 80% CAPACITY UTILISATION

21



Rupees inLakhA. Turn over 43.09B. LessRaw material cost 29.33

Wages and Salary 06.00Consumables & Others 0.67Interest on Loan 0.95Selling and Administration Expenses 1.32Depreciation 0.50Repairs & Maintenance 0.10Insurance 0.10

38.97

C. Loan installment (Rs. 7.0 lakh will repayable within 5 years 60

equal installments

1.40

D. Drawings Rs. 10,000/- per month 1.20E. = (B+C+D) 41.57F. Balance = (A-E) 1.52G. Add depreciation (Non cash expenditure) 0.50H. Annual Cash Accruals 2.02

AKSHAYA JOB CLUBPALAKKAD

E-Centre

According to ‘Multipurpose service centers and job club schemes forthe unemployed in the state of Kerala’ we formed a job club named“AKSHAYA JOB CLUB’. Kindly grand us self employment loan withsubsidy for our joint venture (Akshaya e-centers). The details of theclub members are:

Smitha Muraleedharan : BSc Chemistry, TTC, PGDCA.W/o Muraleedharan.U, Kunnukad House, West Yakkara,

Palakkad-1.Phone : 9446725609, 9447722696Four years teaching experience in a CBSE school.Sanctioned Akshaya e-centre at Koppam, Palakkad-1

Sabina Ummar : BSc Computer ScienceW/o Ummar Farook.A, Kerala Parambu, Alathur-1Phone : 9847085201Five years experience as a Computer Teacher

22



Sanctioned Akshaya e-centre at Erimayur.Ravindranath.G : BSc Physics, PGDCA

S/o Gopalan, Chalakulangara, KuzhalmannamPhone: 9447311635Five year experience in teaching

Sanctioned Akshaya e-centre at KuzhalmannamKavitha.k : M Com, DCAD/o Aravindakshan (Late), Kannembrath House, Kavassery

POPhone : 9495172024Seven years teaching experienceSanctioned Akshaya e-centre at Kavassery

Ramya.K : B Com, DCAW/o Mohandas, Pavizhakunnu House, Mudapallur POPhone : 9745459683Two years experience in teaching

Sanctioned Akshaya e-centre at VandazhyWe, the members of Akshaya Job Club, Palakkad, elected

Mrs. Smitha Muraleedharan as our group leader.

Smitha MuraleedharanSabina UmmarRavindranath.GKavitha.K

Ramya.K

COST OF THE PROJECT AND MEANS OF FINANCING

Cost of Computer and accessories – 5 Nos 95000 x 5 -

4,75,000

Others including building deposit, Furniture, etc 65000 x 5 -

3,25,000

23





Expected Income and Expense Statement of AkshayaJob Club

AKSHAYA CENTRERs. Inlakhs

Year1

Year2

Year 3

Rs. Rs. Rs.A) INCOME

Income earnedE Literacy Programme 4.50 4.50 1.35E-Payment – Service charges 3.60 5.40 6.25Data Entry 1.15 2.25 4.50Internet services 2.40 3.00 3.75E-services – Camera Income etc. 1.80 1.90 2.00

2.40 3.00 3.75

16.25 20.05 21.60

B) EXPENDITURECost of Consumables 1.00 1.10 1.15Salaries and Wages 3.05 3.00 3.05Repairs and Replacements 1.05 1.05 1.05Electricity Charges 1.00 1.05 1.05Rent, Rates and Taxes 1.00 1.05 1.10Telephone, Internet, Postage,etc.

0.60 0.65 0.70

Other Admin. Expenses 1.10 1.15 1.20

TOTAL 8.80 9.00 9.30

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CONTENT

1.0 Background

2.0 Bridging the Digital Divide’ Project

3.0 Integrated Strategy for Entrepreneurship Development

3.1 Campaign

3.2 The e-Literacy Program3.3 Continued e-Literacy Programs

3.4 Entrepreneurship Development

4.0 Model AKSHAYA CENTRE

Marketing, Technical, Financial Aspects

5.0 Conclusion

6.0 Annexures

26



AKSHAYA

A FOCUSSED INTERVENTION FOR CREATION OF MICROENTERPRISES

IN IT SECTOR IN KERALA

(Linked with e-Literacy Program)

1.0 Background

Kerala is galloping towards a revolution in InformationTechnology, which envisages a massive change in all spheres of life. The introduction of e-Governance would makeadministration better, speedier and more transparent.Entrepreneurs-big and small-would spurt all over the State,catering to the demands at national and international standards.Incorporation of IT in education from the primary level wouldresult in applications of IT in every profession and day-to-dayactivities of the next generation. Thus Kerala would become oneof the major IT destinations. All these would augment the qualityof life in Kerala.

It is still a dream to make Kerala a major destination of IT. Themasses do not even have the basic knowledge and skills tooperate a computer. So the whole venture should start from thegrass roots and to be implemented on integrated level. Thepeople are to be prepared to be part of the revolution by makingthem e-literate, to begin with. More importantly, a long-termplan is needed to ensure sustainability of e-literacy and its real-life applications.

In this backdrop, an integrated project ‘Bridging the Digital hasbeen conceived and initiated by the Kerala State IT Mission,which is the nodal agency for IT development in Kerala. In tunewith this, a concrete plan for Entrepreneurship Development &Mass employment Generation in IT sector that also ensure e-Literacy on a sustained manner is also envisaged.

2.0 Akshaya ‘Bridging the Digital Divide’ Project

27



Akshaya – or perpetuating prosperity – marks the beginning of adrive to ‘Bridge the Digital Divide’ by enabling thousands of ordinarycitizens access relevant information in Malayalam over the Internet.Starting at the grass-roots level in Panchayats, the project will

nucleate a robust digital network in Kerala, which will lower theinformation access barrier faced by the common man. TheAkshaya Centers will equip at least one member in each of the 64lakh families to handle man. The Akshaya Centers will equip at leastone member in each of the 64 lakh families to handle computers andthe basics of information and communication technology. AkshayaCentres will also have a set of contents relevant to the commonman in Malayalam. Addressing the issues of access, Skill sets and

content, Akshaya will help develop Kerala into India’s foremostknowledge society.

Akshaya – Salient Features

• 3000-4000 Multipurpose Community Technology Centres(Akshaya Centers) throughout Kerala – one centre within 2-3 km of any household, even in the remotest of areas.

• 64 lakh families to benefit – one computer literate memberin each family.

• The common man to have instant access to relevant e-content in Malayalam.

• Public service information now at every citizen’s fingertips• Faster, more accurate, cheaper communication

technologies.

Most of the governments all over the world started workingon innovate projects in the platform of Information andCommunication Technologies. Kerala after achieving universalliteracy wants to reap the benefits of ICT revolution as well.Providing ICT access to all sections of the society, bridging thedivide between ‘information poor’ and ‘information rich’,developing locally relevant contents, establishing ruralconnectivity, skill set up gradation of the common people,ensuring content to be generated in local language, and deliveryof government services to the grass roots more cost effectivelyand efficiently are the objectives of many of such projects.Akshaya is also developed in the same context but with aremarkable experimentation of bringing private entrepreneurshipto the programme.

28



This project is envisaged as an enabler in generating massiveeconomic growth, creation of direct employment opportunities inthe State. It is expected that the project would have a long-standing impact on the socio-political scenario of the state.

The project has the following four major componentsI. Universal ICT Access

As a first step, a network of Akshaya e-centers is being set upacross Kerala. Run by entrepreneurs, each centre will be a self-sustaining unit. The Centers are being connected throughInternet and Intranet. Development of these centers is expectedto provide direct sustained employment to at least 25,000people (5 Nos. per unit). Each centre is equipped with 5-10computers; printers, scanners, Web cam, other peripherals and

necessary software to carry out various ICT based services. Inaddition, IP phones are being made available in these centers.

II. E-Literacy

Akshaya e-centers provide training that not only familiarizepeople with the basics and scope of IT, but also ensures hands-on skill in operating a computer, using the internet and so on.The objective of e-literacy is to provide a basic understanding toevery family, on the benefits of ICT in to their lives, and morespecifically how to reduce their cost of living and to improve thequality of their life. A carefully designed content moduledesigned in local language is for 15 hrs for each person is amajor highlight of the programme. The process of providing theskill sets shall lead to the creation of a long lasting relationbetween the Akshaya Centers and the families in thecatchments, which on a macro level will generate a state widedata warehouse and repository; of relevant content for thefamilies.

III. Creation of Micro ICT Enterprises .

The Akshaya e-centers are being set up under the soleinitiatives of selected entrepreneurs, who have come forwardfrom among, the local community. These centers are set up aspure entrepreneurial ventures, with an investment of Rs. 3-4lakhs per centre. The entrepreneur spirit has been fully utilisedfor developing the Micro enterprise in the ICT sector. As in thecase of any conventional enterprise, these entrepreneurs displaytheir skills and resources in ICT enabled sectors, content

29



creation, fulfilling the communication needs of the community, e-enabling farmers, scholars, medical practitioners, in thecommunity for total development. These entrepreneurs arefulfilling their social commitment to impart e-literacy to hiscommunity members.

IV. Creation of ICT Service

Akshaya Centers will work as the hubs for providingservices in the education, communication, and informationrequirements of the population. Akshaya network is designed ina way to leverage the potential of social entrepreneurship in therural areas to help the government departments to roll out theiractivities. Activities related to data collection, information,dissemination, decision support systems, online filing of application forms, online public grievance redressal system,

education, HR development initiatives, collection of governmentdues, etc can be routed through Akshaya Centers. AkshayaCenters would be able to identify the local demands, ability tocovert it into services with the help of agencies or departments,if structured in the proper fashion. Government would be able toreduce the cost of the delivery of services and more efficientdissemination is possible.

Role of Government in Akshaya

The role of Government is primarily that of a facilitator, and infunding, providing training content, providing statutoryclearances, implementing a mechanism for remunerating theentrepreneurs for the hired computer time for learning,organizing platforms for operations etc.

3.0 Integrated Strategy for EntrepreneurshipDevelopment

‘Bridge the Digital Divide’ project was first implemented inMalappuram district, replicated in all districts of Kerala. Above5,00,000 people, one member from each family, are e-literate inthe district. This is implemented through 620 Multi-purposeCommunity Technology Centers called ‘Akshayakendram’ havinga direct employment potential to the tune of 3 numbers in eachunit.

The project will have mainly the following inter-related activitiesaccorded to the development of sustained entrepreneurshipalong with sustained e-literacy in IT sector.

30



i) The campaignii) Training for complete e-literacyiii) Service delivery through Akshaya Centers

Duration : The duration of the campaign and e-Literacy trainingwill be 4-6 months. The continued e-Literacy & EntrepreneurshipDevelopment activities will be considered as follow-up phaseactivities that envisaged for three years.

Govt. Approach: The approach of the Government towards theentrepreneur would be to reward him the hired computer timeused for training each citizen, instead of providing unconditionalfinancial support.

3.1 The Awareness & Promotional Campaign

The campaign aimed at popularization of the programme andcreation of awareness among the entrepreneurs and also thepeople at large. It will also create global attention to themovement. The events include articles on the need of theintegrated programme by eminent/accepted personalities inleading dailies and other publications, advertisements/publicitythrough both print and electronic medias, brochures andpostures highlighting the benefits, IT yatras, road shows,seminars, discussions, exhibitions, entertainment programs, etc.

3.2 Training for Complete e-LiteracyOne person from each family in each district, having nocomputer trained members will be selected and provided withspecially designed training for e-literacy.

About 65 lakh persons will be trained accordingly, through theAkshaya Centers established at their walkable reach. A speciallydesigned 15 hour package will be used for training. The traineewill be selected by the families itself through the authorities of concerned LSGB. The age limit preferred is 18 years and above.

The e-literacy training fee will be Rs.120 per head. A nominalamount of Rs. 20 will be charged from the trainees. An averagenumber of 1000-1500 persons are to be trained by the AkshayaCentre within the stipulated time.

From the Akshaya Centers point of view, the centre will havebenefit of assured activity during its initial period of operations.

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3.3 Continued e-Literacy Programme

The benefits of the initial task of spreading e-literacy among themasses would be augmented by providing

“ need-based trainings to the beneficiaries“ e-literacy training to other members of the family with a viewof developing 100% e-literate people in the district.

These would ensure continuity of the programme with theinvolvement of the people

After completing the initial training in the I phase, thebeneficiaries would be grouped into different categories such asstudents, housewives, professional, etc. and will be allowed to

undergo need based trainings at the respective centers. Thecontinued e-learning programme would help the beneficiaries toattain sufficient knowledge and practical skills in specialpackages/areas.

Spoken English, Personality development, career development,job oriented training programs in E-secretaryship and Officeassistants, Accounting etc, are some of the areas which trainingwould be needed for common man massively. Specific packagesare to be designed in a way to impart such trainings using CDsand IT based tools through Akshaya Centres. The ‘contentdevelopment’ initiatives under KSITM may create suitable toolsand distribute to the Akshaya Centres at free of cost. TheAkshaya Centres can offer these exclusive training packages tothe public, with a nominal fee.

Such a measure of rewarding Akshaya Centres in the continuede-Literacy program (proposed as part of follow-up phase) willalso provide a cushion to the Akshaya Centres in the longprocess of developing sustainable entrepreneurship in the state.The project is envisaged to implement in such a way that thestake of generating customers by the entrepreneurs themselvesis increasing gradually during the period of teething problemsand ultimately stabilize on their own feet.

3.4 Entrepreneurship Development

At the end of the campaign, nearly 100-300 Akshaya Centres,with sufficient infrastructure will be available in each district.These centers would cater to the needs of the local people.

32



Sustainability of e-literacy largely depends on existence andgrowth of these centers. Some of the key aspects and suggestedmeasures with regard to the viability and sustainability of Akshaya Centres are discussed below.

Entrepreneur & Selection of EntrepreneurIdentification of right entrepreneur is one of the importantaspects in the success of the venture. Primary levelscreening/selection of entrepreneurs by the LSGBs is suggested.The guidelines regarding criteria and mode of selection is beingformulated separately.

Entrepreneurial Orientation Program (EOP)

The EOP, proposed to be implemented in the pre-operational

stage is meant for the person who will be engaged with with day-to-day management and activities of the Akshaya Centre. Hecan be either the investor or the Manager.

Two persons from each Akshaya Centre will participate in theEOP. The objectives of the EOP are to provide a rightdirection/orientation to the participants who are to implementthe e-literacy program and also lead the proposedentrepreneurial ventures.

The coverage of the EOP that focus on specific business modelwill include concept of Akshaya Centre, orientation towards asuccessful entrepreneurial career, marketing of services,exposure to the e-literacy courseware & training skill etc. The 2participants from each Akshaya Centres attending EOP are toimpart training to other faculties in their Akshaya Centre forimparting e-literacy training with specified courseware. Theduration of the program will be 2 days.

Infrastructure:

The entrepreneur may identify and make suitable premiseavailable for the Akshaya Centre. The minimum area required is400 sq.ft.

Entrepreneurship Development Program :

The Entrepreneurs of Akshaya Centres will have to be providedwith refresher/motivational packages from time to time to makethem successful in the changing environment. The package

33



would be designed in modules of 2 days and impartedperiodically once in two to three months, based on a brick-cement-brick approach.

The proposed Epps are addressing practicing entrepreneurs. Thetraining modules will be designed with business/managementgames, role-plays, motivational laboratories etc. The mainpromoter/manager from each of the Achaia Centre willparticipate.

Unlike conventional Epps, the brick-cement-brick approach willprovide more rooms for re-enforcement of training inputs amongentrepreneurs in the learning process. The entrepreneurs willhave enough opportunities to link the inputs (what they learn inthe training) to the practical entrepreneurial environment.

Learning from feed-back is more effective.It is generally accepted truth that the success rate of conventional EDPs in the state, which usually replicating thewell-known EDII model, is very low.

The proposed program directly target solid outcome of approximately 3000-4000 sustainable entrepreneurial venturesin the district.

Entrepreneur Support Cell (ESC) :

The small entrepreneurs who are venturing in the most dynamicsector, i.e. IT, will need a support system to provide themprofessional guidance and overall managerial directions.

Hence, a District level Entrepreneur Support Cell (ESC) isproposed to be set up under Kerala state IT Mission. The supportwill be necessary for atleast 3 years. The ESC will be able toassist the Akshaya Centres by way of

• Marketing Guidance/Support• Technical guidance for continuous improvements• Content generation related support• Overall Management Support etc.

Professionals from the stream of Marketing, Accounting etc are to beengaged in the same district under the ESC who can closely interactand assess performance of Akshaya Centres, streamline marketing

34



functions, formulate strategies fro improvements by consideringpotential changes and developments in the IT scenario.

The ESC will also be able to assist the Akshaya Centres bytapping bulk orders from the market.

4.0 Model AKSHAYA CENTRE

The marketing, technical and financial aspects of a modelAkshaya Centre are discussed in the following paragraphs.

4.1 Market, Marketing

The Multi-purpose Community Technology Centre (AkshayaCentre) would be positioned as a ‘local node’ engaged in variousIT based activities in the locality of around 1000 families. Itwould cater the need of the local people and also function as adirect link between the people and the Government/Privateorganizations in the areas of Information, Communication, ITpenetration services etc.

The post-literacy market environment would be drasticallydifferent from the present situation that e-literacy level is ameager 1.3% of population in the district. Further, the specificproduct/service mix of an Akshaya Centre would vary fromentrepreneur to entrepreneur or location to location. Hence, aspecific marketing analysis is beyond the scope; however themarketing aspects of a model Akshaya Centre in general isbriefly highlighted below.

The Akshaya Centres will function under unique banner-‘AkshayaKendram’ There is a wide spectrum of opportunities that aretappable by the center. For analytical purposes, the services of Akshaya Centres are categorized into six groups as follows.

• Data Collection/Management• Training/Education• Web Based consultancy Services•

Printing & Publishing• Information Sales• Other General Services

4.1.1 Data Collection & Management

The unique strength of network of Akshaya Centres through outthe state opens up a distinct marketing opportunity in data

35



collection, updating and management. The target groups arestate/central govt. departments, international orgns. Such asUNDP, WHO; industries, researchers etc. Some of the activitiesproposed are

Census (Govt.)Resource Data (GOI, GOK, UN……..)Market Data (Industry)Research DataGrameen Call CentreBlood BankEye Bank….

About FRIENDS e-pay

FRIENDS E-pay is an online bill payment facility introduced byGovernment of Kerala through Akshaya e-kendras in Malappuramdistrict. This is implemented as an extension of FRIENDS project,implemented at fourteen district headquarters of Kerala forcollection of utility bills and taxes to Government. Initially,facility to remit electricity and telephone bills are available inFRIENDS e-pay. It is envisaged to deliver services of 8Government agencies which is presently offered throughFRIENDS and other private sector services through FRIENDS e-pay. Internet banking facility of State Bank of India is used fortransferring funds. The details of the bills remitted by Akshayaentrepreneurs are communicated to concerned departmentsthrough FRIENDS Centre.

Collections through FRIENDS e-pay, crossed One Crore frommore than 32000 transactions within a short span of six months.Nearly 150 Akshaya Centres in Malappuram district is offeringthe services at present. There is a larger scope for extending theservices to more Centres.

4.1.2 Training & Education

There is always scope for marketing of training and education inthe state, which records a high literacy rate in the country andwhere parents have higher level of inclination towards educationof their children. Instead of offering conventional trainingpackages, the Akshaya Centres will launch unique packagesutilizing its distinct strengths as well as advancement in webtechnologies. Exclusive packages would be designed by expertsand different levels of digital content would also be provided at

36



free of cost by the Govt. for specific trainings in selected areasidentified. Some of the unique activities proposed are

i) e-literacy and Continued e-literacy programs

e-literacy trainingAkshaya Centres will be engaged in imparting e-literacyto one member from each families in the district duringthe initial period of 6 days. Each center will gain anassured income of Rs. 1,20,000 by successfully train1000 persons in their catchment area under thissponsored program.

E-literacy Program extended to 2 nd or 3 rd members inthe family on completion of the above sponsoredprogram for eliteracy, the center will have right toextend training to other members of the families undertheir catchment area.Continued second level E-programs to the beneficiary of

1st programii) Other Structured Training

Spoken EnglishPersonality DevelopmentCareer DevelopmentOther job-oriented training

iii) E-learning Nodeiv) E-Tuition Centerv) Entrance Coachingvi) Competitive Exams (PSC, UPSC……..)vii) On-line Examsviii) Collection of Utility bills, taxes etc. of Govt. Department

4.1.3 Web Based consultancy Services:

eg: Marriage ConsultancyReal Estate

Motor VehiclePlacement ServicesTelemedicine etc.

4.1.4 Printing & Publishing :

Digital AlbumsDTP

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Internet PrintoutsIdentity CardsDirectories-Print & Digital(Industry, Business, Professionals, LSGBs, NRIs)

4.1.5 Information SalesGovt.Information Sales

Application FormsUniversities, Exams-Application formsCD RomRelated Print Medium

4.1.6 Other General Services:

Kids CornerE-courierInternet TelephonyChat & Voice ChartWeb BrowsingE-mail

AKSHAYA BUSINESS MODEL

1. Training Centre

Lot of entry and medium level course programmes are offered throughAkshaya Centres, which includes,

• Basic Computer Literacy Package• E-vidya-MS Office Package• Spoken English course programme• Arabic Typing Tutor• Multimedia Training Programmes• Hardware Assembling and Maintenance• Animation, Video Editing Course programmes

•

Computer Courses/e-tuition for Students.All these courses have common fee structure, and govt certification through an online package.More courses can be added in this sector. Govt will provide assistance to faculty training, coursemodule development, continuous training, support and certification. Both intranet and Internetbased training packages are not offered through the centers.

Entrepreneurs are charging from the public to run these course programmes, Govt is onlyproviding content and training support.

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2. Information Kiosk

Akshaya is envisaged as one stop information centre. All kind of information will be madeavailable through the centers. Content has been generated in five core areas including, Health,Agriculture, Career, Education and Laws and regulations. Govt. also digitized all applicationsforms, govt schemes to deliver through Akshaya network.

3. E-transaction centre

Extension of Friends Services through Akshaya Centers. More than 1000 various utility bills canbe collected through this facility. Rs. 5 will be collected from the citizen by the entrepreneur for this facility.

4. e-governance cell

Akshaya centre can be used for delivering various e-governance services to the public, whichinclude, Public Grievances Redressed System, Decision Support systems, Online processing of applications, information dissemination services, digital extension of variouscampaign/awareness programmes, telemedicine, agriculture intervention, etc.

5. Communication hub

Akshaya Centers will also be developed as a Communication hub, which will have all ICT basedcommunication facilities.

Specialisation areas for Akshaya Centers

Akshaya Centers will be given special training, and facilitations to have tie ups in the followingareas based on the capability of entrepreneurs,

• Digitisation and Data Entry Operations.• Hardware Promotion• Financial Kiosk • Travel and Tourism operations• Multimedia, Animation and Designing• IT enabled Vocational Training.• Health Kiosk/Telemedicine applications•

Product Selling

Akshaya Centers will have the following clubs as well,

• Sradha-Kids Club Bhoomi-Farmers Club• Mitra-Unemployed youths Club• Sakthi-Women’s Club

39



5.0 Conclusion & Recommendation

From the marketing, technical & financial analysis, it can be seen that the proposed network of ‘Akshaya Kendram’ is technically feasible and financially viable.

Additional Notes

INCOME FROM OPERATIONS

A) E-Literacy : Each centre will be allotted a definite number of wards with the panchayat

having a population of around 5000 to 10000. Their activities for line of operations will

be controlled to the beneficiaries of the allotted wards. Of this the units will be required

to cover atleast one person from one house hold and impart basic computer knowledge.

All required materials will be provided by the Mission Group which will be co-ordinatingthe activities. Each beneficiary will be required to pay a sum of Rs. 40 for the entire

course and for each such beneficiary, the panchayat will be contributing Rs. 80. It is

expected that each centre will be above to cover 1500 to 2000 beneficiaries in span of

two years. For Projections only 1500 beneficiaries have been taken. The money to be

paid by the panchayat will be paid to the account of the Dist. Collector of the concerned

districts. Up to date only 7 Dists have come forward and only the said 7 Districts have

been considered. In all probabilities all other districts are also likely to follow the suit.

The amount to be paid by the Panchayat @ Rs. 80 per beneficiary can be directly creditedto the loan account as in the existing project at Malappuram. This will cover more than

95% of the loan component excluding interest portion.

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B) E-Training: The centers can impart training on computer on all other areas like MS

Office, Word, Excel and Tally etc. for this the units can charges the normal fees. It is

estimated that the income will be around Rs. 6000 per month.

C) E-Payments: The centers will be authorized to collect all revenues payable by residents

due to various Government Departments like the FRIENDS Counter. They can charge a

nominal service charge of Rs. 5 per transaction. Daily remittances will be made payable

through an Escro account of the bank financing the centre.

D) Data Entry Operations: It is estimated that the unit will be able to raise around Rs. 4000

per month on this account.

E) Internet Services: The unit will be able to offer Internet services as any other internet

Kisok for the general public. The estimated income is Rs. 3000 per month.

F) E-Services : The unit will be having a Web Camera and can have the facility of

converting and undertaking video coverage or marriages and other functions and or

conversion of the same in CD’s.. These are only the limited functions. The unit will have

the approval of IT Mission Group of Government of Kerala.

G) All expenses have been taken at a reasonable basis with provision for annual increase.

Depreciation has been taken at the rates as per Income tax Act. Interest on term loan istaken at the existing rates with a moratorium of 3 months to be repaid in next 57 months.

Though this be the basis for projections, the entire sum to be paid at the rate of Rs. 80 per

beneficiary for aprox. 1500 beneficiary (Rs. 1500 x 80 = Rs. 120000) will be paid by the

govt. to the bank if agreed to by the bank and the beneficiary.

H) FINANCIAL VIABILITY: Projected financial statements in the form of Profitability

statement, Fund flow, Balance Sheet, DSCR, Term Loan repayment schedule, BEP

statements for the entire period of loan are enclosed. From the said statements it can beseen that the proposal is a financially, economically and commercially viable on the

Financial ratios are highly favourable with DSCR at 2.82, BEP at 2.49 lakhs and Debt

equity of 1:1 which goes to support the project.

41



PROJECT REPORT OF MATRIX INFOTECH,MALAPPURAM

Computer Training Centre

CONTENTS

1 INTRODUCTION

2 SCOPE OF THE PROJECT

3 FEASIBILITY REPORT

4 FINANCIAL VIABILITY

5 CONCLUSION

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1 INTRODUCTION

The project envisages setting up of a computer training institute atMalappuram under Multipurpose Job Club Programme sponsored byGovernment of Kerala. The promoters are trained in the field and areseeking self employment. The name of the project is Matrix Infotechand is situated at Down Hill, Malappuram. For details of promoter’srefer Annexure-I.

2. SCOPE OF THE PROJECT

The project is conformity with Government’s policy of providingemployment opportunities to educated unemployed. The proposal isto conduct hardware, software training courses as well as multimediacourses. Malappuram district is still backward in educational field andmore efforts are needed for upliftment of the region. It is with thepurpose of giving proper job oriented training to the unemployed youththis project is envisaged. The promoters propose to tie up withreputed organizations to conduct certified courses. A tie up withLakotia Computer Centre (LCC) is almost finalized.

3. FEASIBILITY REPORT

3.01. Promoters

The four promoters Arif U.V. (Team Leader), Saidu Mohammed P.SubairC.P. and Ameer are qualified youth in search of employmentopportunities. For details refer Annexure-I.

43



3.02 Location

The Institute will be located at Down Hill, Malappuram. The promoters

have taken on lease about 1000 sq.ft. space.

3.03 Cost of the Project

Total project cost is estimated at Rs. 9.79 lakhs. Refer Annexure-II fordetails. Details of computers, accessories are given in Annexure-III.Details as below.

(Rs. InLakhs)

1 Computer etc. 8.052. Electrification

0.253. Furnishing, AC etc 0.944. Working Capital

0.505. Preliminary Expenses

0.05

9.793.04 Means of Finance

Project cost of Rs. 9.79 lakhs is to be financed as below. (Rs. In Lakhs)

1. Own Funds 1.002. Bank Loan 6.35

3. Subsidy from Government

2.44

9.79

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The project is under Governments Multipurpose Job Club Scheme. Theproject is eligible for 25% investments subsidy. The financing patternis:

1. Promoter’s Funds 10%2. Bank Loan 65%3. Subsidy

25%

100%

Debt equity ratio is 6.35:1. Promoters Contribution 10%. Term loan isto be repaid in sixty monthly instalments including three months

repayment holiday. Refer Annexure IV.

4. FINANCIAL VIABILITY

4.01. Profitablility Statement

Projected profitablility statement for five years is given an Annexure-V.It is prepared based on following assumptions.(1) For details of income refer Annexure-VI. Income projections are

on a conservative basis.(2) Income is expected to increase 10%annually.(3) All the four promoters will be involved in the project and willdraw monthly salary. Besides additional staff will also be appointed.(4) Monthly rent is Rs. 10,000/-(5) Various expenses are estimated according to requirement.(6) Expenses of course materials will be charged separately.(7) Interest on loan at 12%

(8) Depreciation at 10% on W.D.V method.(9) Income tax at 10% considering Income Tax provisions like salaryto partners etc.

4.02. Cash Flow Statement

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Projected cash flow statement for five years given as Annexure-VII.Funds generated sufficiently cover loan repayment obligations anddrawings of promoters.

4.03. Balance Sheet

Projected balance sheet for five years given as Annexure-VIII.

4.04. Coverage Ratio.

Refer Annexure-IX.Average DSCR 2.89

Average CFCR 2.67Net Profit ratio varies between 22.16% to 36.40%Payback period being 2 ½ year.

5. CONCLUSION

The proposal to set up a computer training centre at Malappuramunder Multipurpose Job Club Programme of Government of Kerala is laid

out. The scheme is technically feasible and financially viable.

MATRIX INFOTECH, DOWN-HILL, MALAPPURAM, MALAPPURAMDISTRICT

ANNEXURE-1

DETAILS OF PROMOTERS

46



SL NO. Name Address/Qualifications

1. Arif.U.V Uthankanakam(Team Leader) Velladath House

Triprangode-POTirur, Malappuram District(Diploma holder in electronics)

2. Saidu Mohammed.P Pachakunnath HouseTriprangode-POTirur, Malappuram District(Diploma holder in electronics)

3. Subair.C.P Cheriyari Peediyakkal HouseTriprangode-POTirur, Malappuram District(Graduate, Completed

Computer Courses)

4. Ameer Pottivalappil House,Muttannur –POTirur, Malappuram District(PGDCA Holder)


DETAILS OF PROJECT COST & MEANS OF FINANCE

47






Annexure – III

LIST OF COMPUTERS/ EQUIPMENTS

SL. NO. ITEMS QUANTITY Amount Rs .

1 Multimedia Computers 20460,000.00

2. U.P.S 60,000.003. Printer, Scanner

15,000.004. Softwares 80,000.005. Microsoft 60,000.006. System Networking 10,000.007. Multimedia System 120,000.00

805,000.00

49






PROJECTED PROFITABILITY STATEMENT

Annexure-VRs. in lakhs

1 2 3 4 5

A. INCOME 10.20 11.20 12.3513.60 15.00

B. EXPENSES1. Salary 3.60 4.00 4.40 4.85

5.302. Rent 1.20 1.20 1.20 1.32 1.323. Electricity Charge 0.60 0.66 0.73 0.80

0.884. Telephone Charge 0.36 0.40 0.44 0.48 0.535. Repairs & Maintenance 0.18 0.20 0.22 0.24

0.276. Printing & Stationery 0.18 0.20 0.22 0.24

0.277. Travelling / Conveyance 0.18 0.20 0.22 0.24

0.278. Sundry Expense 0.18 0.20 0.22 0.24

0.27

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9. Interest on Loan 0.71 0.56 0.40 0.250.08

10. Depreciation 0.92 0.83 0.75 0.680.61

11. Preliminary Expense 0.01 0.01 0.01 0.010.01

C. TOTAL EXPENSES 8.12 8.46 8.81 9.359.81

D. PROFIT BEFORE TAX 2.08 2.74 3.54 4.255.19

E. INCOME TAX 0.21 0.27 0.35 0.43 0.52F. PROFIT AFTER TAX 1.87 2.47 3.19 3.82

4.67


Annexure – VI

DETAILS OF INCOME

MONTHLY INCOME

A. MULTIMEDIA COURSES

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i. Fees varies between Rs. 2000/- to Rs. 48000/- Course period 3months to 1 ½ years.

ii. On an average 2 students per month – average fees of Rs. 20,000/-

Total monthly fees Rs. 40,000/-

B. PROGRAMMING COURSES

i. Fees varies between Rs. 2000/- to Rs. 7,000/-. Courses periodbeing 3 months to 1 year.

ii. On average ten students per month. Average fees being Rs. 3,000/-.


C. HARDWARE TRAINING CENTRE

i. Fees varies between Rs. 2000/- to Rs. 7,000/-. Courses periodbeing 3 months to 1 year.

ii. On average ten students per month. Fees being Rs. 3000/-


D. Total fees (A+B+C) Rs. 85,000/-

Annual Fees Rs. 10.20 lakhs.


COMPUTATION OF COVERAGE RATIO

Annexure – IX

53



(Rs. In Lakhs)

Year Year Year Year Year1 2 3 4 5

I. A. Profit after Tax before Interestand Depreciation 3.51 3.87 4.35 4.76

5.37B. Income Tax 0.21 0.27 0.35 0.430.52

C. Profit before Interest, Depreciation & Tax 3.72 4.14 4.705.19 5.89

II. A. Interest on Loan 0.71 0.56 0.40 0.25 0.08B. Principal 1.00 1.35 1.35 1.35 1.30

1.71 1.91 1.75 1.60 1.38

III. A. Interest Coverage Ratio 5.24 7.39 11.7520.76 73.63B. Debt Service Coverage Ratio 1.71 2.17 2.69 3.244.27C. Cash Flow Coverage Ratio 2.05 2.03 2.49 2.983.89D. Average DSCR 2.89E. Average CFCR 2.67

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PROJECTED BALANCE SHEET

Annexure-VII(Rs. In Lakhs)

Year Year Year Year Year Year0 1 2 3 4 5

ASSETSFixed Assets 9.24 9.24 9.24 10.74 12.2415.24Less: Depreciation - 0.92 1.75 2.50 3.18 3.79

Net Assets 9.24 8.32 7.49 8.24 9.0611.45Current Assets 0.50 0.50 0.55 0.61 0.67

0.74Preliminary Expense 0.50 0.04 0.03 0.02 0.01

-Cash on hand - 0.60 1.31 1.15 1.55

0.45

9.79 9.46 9.38 10.0211.2912.64

LIABILITIESCapital 1.00 1.67 2.94 4.93 7.55

10.20Bank Loan 6.35 5.35 4.00 2.65 1.30 -Subsidy 2.44 2.44 2.44 2.44 2.44

2.44

9.79 9.46 9.38 10.0211.2912.64

55




PROJECTED CASH FLOW STATEMENT

Annexure – VII(Rs. In Lakhs)

Year Year Year Year Year Year0 1 2 3 4 5

A. SOURCE OF FUNDS

Profit before Tax - 2.08 2.74 3.54 4.254.67

Add: Interest on Loan - 0.71 0.56 0.40 0.250.08Depreciation - 0.92 0.83 0.75 0.68 0.61Preliminary Expenses - 0.01 0.01 0.01 0.010.01

Generation of Income - 3.72 4.14 4.705.19 5.37Capital 1.00Bank Loan 6.35Subsidy 2.44

Total Source of Funds (A) 9.79 3.72 4.14 4.70 5.195.37

B. APPLICATION OF FUNDS

Fixed Assets 9.24 1.50 1.50 3.00Current Assets 0.50 - 0.05 0.06 0.060.07

56



Preliminary Expenses 0.05 - - - --Repayment of Loan - 1.00 1.35 1.35 1.35 1.30Interest on Loan - 0.71 0.56 0.40 0.250.08Income Tax - 0.21 0.27 0.35 0.43 0.52Drawings - 1.20 1.20 1.20 1.20 1.50

Total Application of Funds (B) 9.79 3.12 3.43 4.864.79 6.47

Opening Balance - - 0.60 1.31 1.151.55Surplus - 0.60 0.71 (0.16) 0.40(1.10)Closing Balance - 0.60 1.31 1.15 1.550.45

5 Star Net CafeVandiperiyar- Internet cafe

JOB CLUB

A five members group from various places near Vandiperiyar is ready to

take the challenge of having a Job Club with a lot of interest and courage. We are

thinking of starting an Internet Café including some other projects. The other projects

include Photostat, Lamination, Binding, Project works for Students, Computer games andDTP works. The introduction of Computer to our people can make a whole change in

their physical and mental abilities. We are very proud to start a project like this.

The five members are :

1. Vinod.Ravi,

57



Panikkattil House,Thungamala EstateVandiperiyar. P.O.

2. Vibin.P.V,

Plavunilkkunnathil (H),Kollam Pattada,Kumily.P.O.

3. Dhanup.K.A,Kolam kottil House,55 th Mile,Karadigoody. P.O.,Peermade.

4. Nissam.P.A,

Poovathumkal (H),62 nd Mile,Vandiperiyar.P.O.

5. Ajesh Kumar.K.SKattuparambil (H)Kochukarintharuvi.P.O,Elappara.

INTERNET

Now a days Computer has become an un-affordable thing in our life. It is useful,not only for the well-educated people, but also for the common people and our young

generation including students and job-seeking guys.

This is the same case where we think about Internet. With the help of Internet we

can have the whole world in our hand. We can communicate with abroad people using

Internet.

Students can collect a lot of valuable information through Internet. This will helpthem a lot in their studies and even their future. It is helpful in the case of Job-seekers

too. They are able to collect information about various vacancies, job centers and now

the people can apply through Internet.

So, it is sure that Internet is having a serious connection with the world today.

58



SUCCESS OF THE PROJECT

There is no reputed Internet Cafe at or near Vandiperiyar. Nearest Internet Café

is at Kumily which is 15 (fifteen) kilometers away from Vandiperiyar. Here, students

and other people are having Internet facility at Kumily. There are a lot of Government

Offices and private institutions running in our place. Not only that, Govt. Polytechnic is

only 3 (three) km away from us. Nearly 600 students are there in the Polytechnic itself.

We can have so many customers from the polytechnic using Internet and also project

works including Photostat. Our Internet café will be the nearest for those students. We

have included DTP works, lamination, and Various computer games in our project so

that, we can have more income.

The members of this new project are from various places and all are having

adequate contacts with the common people. We are able to collect works from various

Offices, Institutions, Shops, etc.

So, we are ready to take the challenge of our new project for its success.

PROJECT DETAILS

Project : Internet Café, DTP Centre, Photostat,Lamination, Project Works and

Computer Games.

Proposed Name : 5 Star Net Café.

Site : Vandiperiyar Building : Mubarak Buildings, Vandiperiyar.Floor : First.Area : 12” X 35”

Requirements of the Project.

1. Computers and its Peripherals.2. Photostat Machine.3. Fax Machine

59



4. Telephone.5. Fabrication Works.6. Office Equipments.7. Vehicle for Office and Taxi Purpose.

PROJECT ESTIMATE

No. Item Rate Qty. Total1 Computers (for Internet & Office) 25,000.00 5 1,25,000.002 Computer for DTP Work 30,000.00 1 30,000.003 Printer (Laser) 10,000.00 1 10,000.004 Scanner 4,000.00 1 4,000.005 Web Camera (for Internet) 1,500.00 4 6,000.006 UPS (for all Computers with

Battery)20,000.00 1 20,000.00

7 Photostat Machine (Colour) 75,000.00 1 75,000.00

8 Fax Machine 5,000.00 1 5,000.009 Telephone (with connection) 10,000.00 1 10,000.0010 Lamination Machine 4,000.00 1 4,000.0011 Spiral Binding 1,000.00 1 1,000.0012 Front Office Table (with locker) 5,000.00 1 5.000.0013 Computer Table 2,000.00 1 2,000.0014 Chair (Executive) 4,000.00 2 8,000.0015 Chair (Local) 250.00 16 4,000.00

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16 Electrical Works (including Fans& Fittings)

20,000.00

17 Furnishing (Front Office &Internet café)

75,000.00

18 Vehicle (Maruthi-Omni) with

sieze

75,000.00

19 Advertisement (Flux, Boards, TV,Newspapers, Notice & Cards

10,000.00

20 Transportation & Other Expenses 10,000.00TOTAL 4,99,000.00

WORKS

1. Internet Café2. DTP Works of different Institutions and Offices.3. Photostat.4. Lamination.5. Spiral Binding6. Project Works for College and Polytechnic Students7. Computer Games.

8. Vehicle (Office & Taxi)

MONTHLY INCOME & EXPENSES

Expense IncomeParticulars Amount Particulars Amount

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Electricity 500.00 Internet 7,200.00Telephone 2,500.00 DTP 3,000.00Rent 1,000.00 Games 1,000.00Stationery 4,000.00 Photostat 3,000.00Miscellaneous 1,000.00 Lamination (According

to work)

500.00

Project Assistance 2,000.00Vehicle 6,000.00

Profit 13,700.00Total Expense 22,700.00 Total Income 22,700.00

Amount which can be remitted to bank - Rs. 5,000/-Balance amount will be shared equally between the 5 members.

CASH FLOW STATEMENT

Total Project Expense : Rs. 5,00,000/-

Margin Money : Rs. 50,000/-

Subsidy from Government : Rs. 1,25,000/-

Amount to be taken from Bank : Rs. 3,25,000/-

Name of Bank : S.B.T – Vandiperiyar

Bank Guarantee : Credit Guarantee Fund Trust

Corporation.

62



Yearly payment expected : Rs. 50,000/- per year.

CERTIFICATE

This is to certify that the five members namely Vinod. Ravi, Vibin.P.V.,

Nissam.P.A, Dhanup.K.A, Ajeshkumar.K.S are known to me for their project will be a

great success and it will be an asset for Vandiperiyar. I wish them all success.

63



M/s AKSHAYA Dressed/Dry fish Unit, Valiazheeckal, Arattupuzha,Alappuzha Dist.

1. INTRODUCTION

Dressed/Dry fish Unit

M/s. Akshaya Dressed/Dry fish Unit, Valiazheeckal, Arattupuzha, Alappuzha

Dist. Is a Micro Enterprise Unit for the manufacturer of Dressed and Dry fish and prawn.

The unit is proposed to be promoted as SHG, NHG concern. The activity group

member’s are capable of running the unit successfully.

64





The entrepreneurs are capable of raising the required margin for the

implementation of the unit.

6. SCOPE OF THE INDUSTRY & MARKET

The items proposed to be manufacture in the unit are dressed fish and dry fish.

The dressed fishes can be sold in the areas of Arattupuzha Bus stand and other junctions

of National Highway. For this purpose they are planning to use a trolley having four

wheels. Dried fishes have very good demand in the eastern part of the district. Hence

there is no problem for marketing the product.

7. AVAILABILITY OF RAW MATERIALS

The raw materials required for the unit is fresh fishes and prawns, which is

cheaply available from the landing center of Arattupuzha. The activity group members

belong to the fisher women community. Hence they can get fresh fishes on bulk quantity

at cheaper price. Other important factor is the occasional formation of the “mud banks”

of Alappuzha coasts. It is an easy and important way of raw material availability.

8. MANUFACTURING PROCESS

This entrepreneur is planning to start their unit in coastal area of the Arattupuzha

Grama Panchayath. Hence they can get fishes at cheaper rates. They are decided to dress

fishes by washing and cutting into desired sizes and packing. Actually it is a ready to

cook product. During all process they will be following good manufacturing practices

(GMP). They use glows, Apron and hairnets. Water used for this processing is

chlorinated for avoiding contamination.

Fish drying also done in very hygienic conditions. They are planning to use adrier in which fish can be dried in a hygienic way.

9. EFFLUENT DISPOSAL

66



At first stage the waste water from the processing unit is in very low quantity. It

can be disposed by buried in soil.

10. ANNUAL PRODUCTION CAPACITY

The annual production capacity of the unit is to manufacture 299952 kg dresses

fish and 6240 kg dried fish. However, the unit is expected to utilize 75% of its installed

capacity during first year of its operation.

11. PROJECT PARTICULARS

a) Land & BuildingThe land has been obtained on monthly rent of Rs. 1000/- at Tharayilkadavu,

Arattupuzha.

b) Plant, Machinery & EquipmentThe Unit requires machinery and equipments worth Rs. 2,63,718/-. The plant,machinery and equipments listed are essential and sufficient for the level of operation envisaged.

c) Manpower requirementsThe unit can provide employment for five persons directly.

12. FINANCIAL ANALYSIS

A. FIXED CAPITAL

Sl.No. Items of Investment Qty. Rate in Rs. Amount Rs.

1 Shed 1 90,000 90,0002 Drier (Aluminium tented solar type) 1 62,000 62,0003 Fish craters 60 600 36,000

4 Weighing machine electronic 1 10,980 10,9805 Packing machine 1 7350 73506 Office table 1 4000 40007 Plastic chairs 10 625 62508 Knife and Vessels - - 12,0009 Processing Table 2 4200 840010 Display Board 1 3300 330011 Pre-operative expenses, Apron, - - 10880

67



Glows, Hairnet, etc.12 Contingency (5%) 12558

Total 2,63,718

B. WORKING CAPITAL (One Week)

Sl.No. Particulars Rate (Rs.) Qty. Duration Amount

1 Raw fish for dressing 60 240 kg 4 days 576002 Raw fish for drying 40 240 kg 8 days 768003 Ice 1 day 5004 Salt 1 day 5005 Transportation charge 1 Month 30006 Rent 1 Month 10007 Cover & Sticker 1500

Total 140900

13. COST OF PROJECT

Fixed Capital - Rs. 2,63,718

Working Capital - Rs. 1,40,900

Total Venture Cost - Rs. 4,03,718

14. MEANS OF FINANCE

VENTURE COST - Rs. 4,03,7181. Bank Loan - Rs. 2,50,000 (62%)2. Employment - Rs. 1,00,000 (25%)3. Beneficiary contribution - Rs. 53,718 (13%)

15. CAPACITY BUILDING

Akshaya Dressed/Dry Fish Unit, Valiyazheeckal, Arattupuzha, Alappuzha

consists of five members, had undergone 4 days residential training (Opportunity

Guidance). During training they learned about project preparation, how to manage a

business properly etc. They are now a well motivated group ready to start their project.

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16. CONCLUSION

M/s. Akshaya Dressed/Dry Fish Unit, Valiyazheeckal, Arattupuzha, Alappuzha

Dist is a proposed Micro Enterprise Unit for the manufacture of fish products. The

project cost proposed is to be raised through capital by the activity group members as

Beneficiary contribution, financial assistance from bank as loan and NES share (National

Employment Service) as Govt. subsidy. It will be observed from financial statement and

projection given in this project report that the project is technically feasible and

economically viable.

Annexure-I

Raw materials requirement per day

Sl.No. Particulars Qty. Unit cost

(Rs.)Amount

(Rs.)1 Raw fish for dressing 3120 kg 50 1,56,0002 Raw fish for drying 3120 kg 30 93,6003 Ice LS 4,0004 Salt LS 4,000

Total 6240 kg 2,57,600Dressed Fish 26 working days in amonth (12 months)3120/26Dry Fish 26 working days in amonth 8 months in a year.3120/26

120kg/day

120kg/day

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"OZONE NATURAL CARRY BAGS"Vazhavara.P.O

NAME AND ADDRESS OF PROMOTERS

1. Anil Kurian, Aged 26 Years, W/o Jinu, Uruliyanickal House, Vazhavara.P.O,

Kattappana, Kattappana Village, Udumbanchola Taluk, Idukki Dist., Kerala.

71





ammonia and hydrogenating the product. Nylon is insoluble in water and in ordinary

organic solvents; it dissolves in phenol, cresol, and formic acid and melts at 263 0 C

(505 0 F).

Nylon is used in the manufacture of fabrics for such articles as hosiery, sleepwear,

underwear, blouses, shirts, and raincoats. Nylon fabrics are water resistant; thy dry

quickly when laundered and usually require little or no ironing. Nylon fibres are also

used for parachutes, insect screening, medical sutures, strings for tennis rackets, brush

bristles, rope, and fishing nets and line. Moulded nylon is used for insulating material,

combs, kitchen utensils, and machinery parts.

Nylon sheet is an excellent Engineering Plastic that is well suited to machining onautomatic equipment. It has high mechanical strength and good sliding properties.

Nylon Sheet also has excellent wear, abrasion and good heat resistance. Nylon Sheet is

one of the engineering plastics which has become one of the most popular and has

become probably the most well known of all engineering plastics on the market because

of its all round performance today.

The name “nylons” refers to the group of plastics known as polyamides. Nylons are

typified by amide groups (CONH) and encompass a range of material types (e.g. Nylon

6,6; Nylon 6,12; Nylon 4,6; Nylon 6; Nylon 12 etc.), providing an extremely broad range

of available properties. Nylon is used in the production of film and fibre.

Nylon is formed by two methods. Dual numbers arise from the first, a condensation

reaction between diamines and dibasic acids produces a nylon salt. The first number of

the nylon type refers to the number of carbon atoms in the diamine, the second number is

the quantity in the acid (e.g. nylon 6,12 or nylon 6,6).

73



The second process involves opening up a monomer containing both amine and acid

groups known as a lactam ring. The nylon identity is based on the number of atoms in

the lactam monomer (e.g. nylon 6 or nylon 12 etc).

APPLICATIONS

Nylon fibres are used in textiles, fishing line and carpets. Nylon films is used for food

packaging, offering toughness and low gas permeability, and coupled with its

temperature resistance, for boil-in-the-bag food packaging. Moulding and extrusion

compounds find many applications as replacements for metal parts, for instance in car

engine components. Intake manifolds in nylon are tough, corrosion resistant, lighter andcheaper than aluminium (once tooling costs are covered) and offer better air flow due to a

smooth internal bore instead of a rough cast one. Its self-lubricating properties make it

useful for gears and bearings. Electrical insulation, corrosion resistance and toughness

make nylon a good choice for high load parts in electrical applications as insulators,

switch housings and the ubiquitous cable ties. Another major application is for power

tool housings.

Nylon is a thermoplastic silky material, first used commercially in a nylon-bristled

toothbrush (1938), followed more famously by women’s nylons” stockings (1940). It is

made of repeating units linked by peptide bonds (another name for amide bonds) and is

frequently referred to as polymide (PA). Nylon was the first commercially successful

polymer and the first synthetic fiber to be made entirely from coal, water and air. These

are formed into monomers of intermediate molecular weight, which are then reacted to

form long polymer chains.

Characteristics

• Variation of luster: nylon has the ability to be very lusterous, semilusterous or dull.

74





• Auto parts: intake manifolds, gas (petrol) tanks• Slings and rope used in climbing gear • Machine parts, such as gears and bearings• Parachutes• Metalized nylon balloons•

Classical and flamenco guitar strings• Paintball marker bolts• Racquetball, squash and tennis racquet strings• Strings for String instruments• Drumstick heads• As filter media in sterilizing grade filters• Flexible tubing• Basketball netting• Sutures

2. LINE OF ACTIVITY

The proposed unit shall be a mini industrial unit. The raw materials for

the unit are the Nylon, which is a type nylon cloth. The raw material is an importing one,

but the promoters can purchases it from Moovattupuzha. The number one producers of

Nylon cloth are China and Thailand. The importers are importing this material and

shaped with Laser Machine. High speed weaving machine is using for making carry

bags.

76



The installed capacity of the proposed unit is in the size of 9X 12-

500/Day, 12X 16-500/Day, 20X18-500/Day. The capacity utilization is estimated to

60%, 70% and 80% for the first three years respectively.

4. LOCATION

The proposed unit is located at Vazhavara in the area of Kattappana

Panchayath, Udumbanchola Taluk, Idukki Dist.

5. SCOPE

Rather than agriculture sector the industrial sector faces serious

difficulties. Getting of raw material and finding out the market, substitute product the

market stability are the main problems to be faced. The resent time the Government

make rule on the use of Plastic material. It brings motivation to Nylon carry bagindustry.

77



The promoters of the project are energetic and dynamic personalities, so

they can face the problems of market conditions and other related problems and can

successfully handle the project.

6. MANPOWER AND EMPLOYMENT POTENTIAL

The proposed unit provides direct employment to 5 persons expect of

promoters. Two women workers and three male workers get direct employment in this

unit. There shall be two skilled male workers who look after the process spinning and

packing.

MANPOWER REQUIREMENT SCHEDULE

Designation Numbers Salary/Month Total

Accountant Cum Clerk 1 2,000.00 24,000.00

Skilled Workers 2 2,000.00 48,000.00

Unskilled Workers 2 1,000.00 24,000.00

78





Plant & MachineryWorking Capital

3.50

2.50

Total 6.00

MEANS OF FINANCE

Own FundTerm Loan from Bank

1.00

5.00

Total 6.00

ANNEXURE – II

PROJECTED BALANCE SHEET

Rs. in Lakhs

80



YearI

YearII

YearIII

YearIV

YearV

YearVI

YearVII

LIABILITIES

CapitalProfit & Loss A/cSubsidyTerm LoanSundry Creditors

1.000.730.184.280.67

1.002.050.183.561.25

1.004.000.182.841.83

1.006.090.182.122.41

1.008.280.181.403.00

1.0010.560.180.683.45

1.0012.860.17

……4.00

TOTAL 6.86 8.04 9.85 11.80 13.86 15.87 18.03

ASSETS

Fixed AssetsLess: Depreciation

Subsidy depositCurrent Assets:Closing Stock Sundry DebtorsCash & Bank

3.500.35 3.500.67 3.500.95 3.501.21 3.501.44 3.501.65 3.501.84

3.150.18

0.901.221.41

2.830.18

0.971.302.76

2.550.18

1.031.424.67

2.290.18

1.101.516.72

2.060.18

1.171.608.85

1.850.18

1.251.70

10.89

1.660.17

1.331.80

13.07

TOTAL 6.86 8.04 9.85 11.80 13.86 15.87 18.03

ANNEXURE – III

PROJECTED PROFITABILITY STATEMENT Rs. in Lakhs

INCOME YearI

YearII

YearIII

YearIV

YearV

YearVI

YearVII

60% 70% 80% 80% 80% 80% 80%SalesClosing Stock

5.800.90

6.880.97

7.991.03

8.201.10

8.341.17

8.601.25

9.001.33

TOTAL 6.70 7.85 9.02 9.30 9.51 9.85 10.33

81



EXPENDITURE

Opening Stock Material purchase

Salaries & WagesProcessing ChargesAdministrationExpensesRepairs &MaintenanceCredit guaranteefund PremiumElectricity ChargesRentInterest on Term

LoanDepreciation

….....2.52

0.960.53

0.20

0.10

0.090.120.24

0.700.3

0.902.195

1.000.58

0.21

0.11

0.0450.130.24

0.600.32

0.972.325

1.100.66

0.22

0.12

0.0450.150.24

0.500.28

1.032.335

1.100.75

0.23

0.13

0.0450.160.24

0.400.26

1.102.375

1.100.80

0.24

0.15

0.0450.180.24

0.300.23

1.172.435

1.100.90

0.26

0.17

0.0450.200.24

0.200.21

1.252.605

1.150.98

0.29

0.20

0.0450.220.24

0.100.19

TOTAL 5.81 6.33 6.61 6.68 6.76 6.93 7.27

Profit Before TaxProvision for Tax

0.890.16

1.520.19

2.410.46

2.620.53

2.750.57

2.920.64

3.060.70

Profit After Tax

Brought Forward

ProfitBalance Transferredto Balance Sheet

0.73

…….

0.73

1.32

0.73

2.05

1.95

2.05

4.00

2.09

4.00

6.09

2.19

6.09

8.28

2.28

8.28

10.56

2.36

10.50

12.86

ANNEXURE – IV

PROJECTED CASH FLOW STATEMENT

Rs. in Lakhs

INFLOW YearI

YearII

YearIII

YearIV

YearV

YearVI

YearVII

Profit After TaxAdd: Depreciation

0.730.35

1.320.32

1.950.28

2.090.26

2.190.23

2.280.21

2.360.19

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Cash From Operation

Increase in Capital

Increase in Current Liability

Increase in Creditors

1.08

1.00

5.00

0.67

1.64

…..

0.58

…..

2.23

……

0.58

……

2.35

……

0.58

……

2.42

……

0.59

……

2.49

…….

0.45

……

2.55

……

0.50

……TOTAL 7.75 2.22 2.81 2.93 3.01 2.94 3.05

OUTFLOW

Increase in Fixed Assets

Term Loan Repayment

Increase in Current Assets

3.50

0.72

2.12

…..

0.72

0.15

……

0.72

0.18

…….

0.72

0.16

…….

0.72

0.16

…….

0.72

0.18

……

0.68

0.19TOTAL 6.34 0.87 0.90 0.88 0.88 0.90 0.87Balance

Opening Balance Cash&Bank

Closing Balance Cash& Bank

1.41

…..

1.41

1.35

1.41

2.76

1.91

2.76

4.67

2.05

4.67

6.72

2.13

6.72

8.85

2.04

8.85

10.89

2.18

10.89

13.07

ANNEXURE – V

STATEMENT OF DEPRECIATION Rs. in Lakhs

Item YearI

YearII

YearIII

YearIV

YearV

YearVI

YearVII

Plant & Machinery

Gross Block 3.50 3.50 3.50 3.50 3.50 3.50 3.50

83



Depreciation up to the year

Depreciation for the year

Total Depreciation

Net Block

…..

0.35

0.35

3.15

0.35

0.32

0.67

2.83

0.67

0.28

0.95

2.55

0.95

0.26

1.21

2.29

1.21

0.23

1.44

2.06

1.44

0.21

1.65

1.85

1.65

0.19

1.84

1.66

Total Assets 3.50 3.50 3.50 3.50 3.50 3.50 3.50Depreciation for the year 0.35 0.32 0.28 0.26 0.23 0.21 0.19Cumulative Depreciation 0.35 0.67 0.95 1.21 1.44 1.65 1.84Net Block 3.15 2.83 2.55 2.29 2.06 1.85 1.66

ANNEXURE – VI

DEBT SERVICE COVERAGE RATIORs. in Lakhs

Year I Year II YearIII

YearIV

Year V YearVI

YearVII

Profit After TaxDepreciationInterest onTerm Loan

0.730.35

0.70

1.320.32

0.60

1.950.28

0.50

2.090.26

0.40

2.190.23

0.30

2.280.21

0.20

2.360.19

0.10

Total 1.78 2.24 2.73 2.75 2.72 2.69 2.65Principal

RepaymentInterest onTerm Loan

0.72

0.70

0.72

0.60

0.72

0.50

0.72

0.40

0.72

0.30

0.72

0.20

0.68

0.10Total 1.42 1.32 1.22 1.12 1.02 0.92 0.78DSCR 1.26 1.70 2.24 2.46 2.67 2.92 3.40Average DSCR 2.38

PROJECT REPORTOF A HANDICRAFT UNITUNDER THE WORK CLUB SCHEMEIMPLEMENTED BY GOVT. OF KERALATHROUGH EMPLOYMENT EXCHANGE

84



UNIT ADDRESSSNEHA HANDICRAFTSKARIMBILOTTU KUNDAKATTIPPARATHAMARASSERY KOZHIKODE – 673 573

WORK CLUB MEMBERS

1. MAIMOONA A.P2. SAINABA.K.T3. THAHIRA.U.A4. JAMEELA. K.P5. JAMEELA. P.A

PROJECT HIGH LIGHTSPromoters

1. Maimoona A.P, Karimbilottu Kunda (h)Kattippara P.O, Thamarassery via, Kozhikode – 673 573

2. Sainaba.K.T, Karimbilottu Kunda (h)Kattippara P.O, Thamarassery via, Kozhikode – 673 573

3. Thahira.u.a, Karimbilottu Kunda (h)Kattippara P.O, Thamarassery via, Kozhikode – 673 573

4. Jameela.K.P, Karimbilottu Kunda (h)w/o AbdulrahimanKattippara P.O, Thamarassery via, Kozhikode – 673 573

85



5. Jameela.P.A, Karimbilottu Kunda (h) w/o MuhammedKattippara P.O, Thamarassery via, Kozhikode – 673 573

Address of the Unit : Sneha HandicraftsKarimbilottu Kunda (h)

Kattippara P.O,Thamarassery via,Kozhikode – 673 573

State : KeralaDistrict : KozhikodeBlock : KoduvallyTaluk : KozhikodePanchayat : KattipparaVillage : KedavoorEmployment Exchange : ThamarasseryVillage Industries Activity : Manufacturing of special

artistic flower wase, flower, TV stand,telephone stand,

teapoy, etc.No. of workers : 9Cost of Project : Rs. 8,00,000Capital Expenditure : Rs. 1,00,000Working Capital : Rs. 7,00,000Share Capital : Rs. 80,000Bank Loan : Rs. 5,20,000Subsidy fromEmpl. Exchange : Rs. 2,00,000Per cap. Fixed investment : Rs. 11,111No. of working days : 300 days in a yearNo. of shifts per day : 1

-: INTRODUCTION :-

This is a highly marketable and specially job giving unit going to beestablished under the special Work Club scheme of ThamarasseryEmployment Exchange . The unit will be in Kedavoor village, inKattippara panchayat, in Kozhikode dt.This unit is going to be started by the 5 work club members of a self Help Group namely “Sneha Swashraya Suhruth Samithi’ .This group was formed on 08-11-98, with a bank account in SouthIndian Bank, Poonoor Branch , and the Account number was 3096 .This group now contains 13 members. The SHG now has an amount of Rs. 2,20,490 as savings. The SHG has bought a total loan amount of

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Rs. 5,85,000 from the bank and has given Rs. 10,57,287 to variousmembers as loan for various purposes till now. The members havecompletely repaid the above whole amount to the bank without anyfault, in specified time.

The SHG now has an amount of Rs. 1,62,614 in the aforesaid account,in the same bank branch.

The SHG has given loans as home loans, marriage loans and also forvarious purposes including cow farming, goat farming, bakery units,copra units, tea stalls, stationery shopes etc. Besides, the SHGperforms various other social services.

The aforesaid work club is going to be formed by co-ordinating themost experienced, expert & qualified 5 members of the Work club, withSmt. Maimoona.A.P as the Group leader.

The products of the unit are highly special and marketable. Theproducts include special artistic flower with plastic and cloth and flowerwase. TV stand, telephone stand, teapoy etc. with coffee wood root.The unit has great chance of success. It can give job to many personsin addition to the promoters. It can be started with comparativelylesser amount of capital expenditure.

-: PROMOTER AND THE MANAGEMENT

The promoters of the unit are the 5 aforesaid work club members. Thename & address of them are following. All of them have high skill andgreat experience in the proposed artistic items manufacturing. Theextra workers will be appointed as per the need later. They can leadthe unit to victory using their good social contacts and great managingpower. They will get all encouragement for the unit from the nativepeople as such a unit will be a benefit to them. Enough skilled andsemiskilled workers needed for the smooth running of the unit arelocally available.

1. Maimoona A.P, W/o Kassim Group Leader

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Karimbilottu Kunda (h) Age – 37 Qualification – SSLCKattippara P.O,Thamarassery via,Kozhikode – 673 573

2. Sainaba.K.T, W/o Muhammed HaneefaKarimbilottu Kunda (h) Age – 37 Qualification –SSLC (F)

Kattippara P.O,Thamarassery via,Kozhikode – 673 573

3. Thahira.u.a, W/o Abdul NazarKarimbilottu Kunda (h) Age – 37 Qualification –

SSLCKattippara P.O,

Thamarassery via,Kozhikode – 673 573

4. Jameela.K.P, w/o AbdulrahimanKarimbilottu Kunda (h) Age – 37 Qualification - 6 th

Std.Kattippara P.O,Thamarassery via,Kozhikode – 673 573

5. Jameela.P.A, w/o MuhammedKarimbilottu Kunda (h) Age – 38 Qualification – SSLC (F)Kattippara P.O,Thamarassery via,Kozhikode – 673 573

:- SCHEME OF THE PROJECT

The unit is going to be started under the Work Club scheme,established by Kerala Govt. It is implemented through Employmentexchanges. The aim of the scheme is to encourage and to give job totraditional artisans and to technically qualified persons. It is alsouseful to encourage units which can be started with lesser capitalinvestment. This also helps to provide job opportunities to the personsand candidates who have registered their names in Employmentexchanges.

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As per this special scheme, 10% of the project cost will be contributedby the promoters and 25% or a maximum amount of Rs. 2 lakhs will becontributed by Employment exchanges and the rest amount will begiven from the bank as term loan. The interest and repayment will beneeded only for the amount giving from the bank, and the amount

given from the exchange will be completely considered as subsidy andnot as a loan. A provision of 1% of the total annual sales turnover of the unit will be remitted to the Employment exchange by thepromoters.

-: SCOPE & DEMAND OF THE PROJECT:-

The unit will deal with the manufacturing & marketing of thespecial type of artistic handicraft items including flower wase, TVstand, telephone stand, teapoy etc. made of special wood rootsincluding roots of coffee wood, rose wood, kumizh wood etc. The

mainly making item will be the highly attractive flower wases and themainly using wood root will be the coffee wood roots. All the productswill be of very attractive designs and will adorn very much the placedroom of homes, hotels, offices etc. The TV stand and telephone standwill offer high ease, safety and convenience to place TV & phonerespectively. Similarly the carved artistic flower wases can be used tofill with natural or artificial flowers and can be placed on tables, teapoy etc. for a looking pleasure and as a part of room decorationThe flower wases can also be fitted in the corners and on the walls of the rooms for adorning the rooms. Similarly the carved tea poy alsowill be very attractive and of high use. The teapoy may be fitted withglass if needed. The tea poy can be used to have tea and snacks andcan be used to treat guests. So as all the items are highly variety, rareand usable items, the market potential of them will be high. It willneed only smaller machines and tools, as the main works are themanual carving, designing, polishing, etc. So the products will surelygain good market value and the unit will find success even within ashort period.

The flowers will be made with various types of clothes and these madeflowers can be joined correctly to yield highly attractive bokey.The unit will directly market the products to the wholesale & retaildealers and shopes in Kozhikode & Malappuram districts in thebeginning. The items are even export oriented. The orders from manybig dealers will be gained by appointing efficient marketing executives.The promoters will gain contacts and contracts with many famouswholesale dealers of the field, the marketing will not be a problem atall. Only high quality raw materials will be used for the manufacturingto ensure the quality of products. There are little similar units in the

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4. Trial production 3-45. Commercial production 3-4

-: RAW MATERIALS REQUIREMENTS :-

The raw material required for the project are the main roots of coffeewood, rose wood, kurnish wood, etc. and flower cloth, flower leaf,flower thongal, flower star cup, inner cup, leaf pin, leaf chain, basket,plaster of paris, thermocol, gum, stainer, polish, sand paper, glass,fevicol, etc. All these items will be stocked for the needed purchasequantity and will be purchased from authorised wholesale dealers. Thedetails of them for 100% capacity utilisation are given in AnnexureII.

-: MANPOWER REQUIREMENTS :-

The work force required for the project is totally 9 nos. includingmainly manager cum supervisor, skilled workers, helpers etc. Theseworkers will be necessary and sufficient for the smooth running of theunit. Highly experienced and hard working personnel's will beappointed for each section as the success of any unit depends uponthe capability and sincerity of the workers. The details on themanpower requirement and calculation of wages are given inAnnexure III.

-: COST OF PROJECT :-

The estimated total project cost is Rs. 8,00,000. It includes the capitalexpenditure of Rs. 1,00,000 and the working capital of Rs. 7,00,000.The amount of machinery, preliminary expense etc. come undercapital expenditure. The expense for one cycle of operation comesunder working capital. The details are in Annexure IV.

-: MEANS OF FINANCE

The promoters will contribute 10% of the total project cost. The 25%of the total project cost will be given under the scheme and the rest65% will be availed as bank loan which will be repaid as per the termsand conditions of the bank. The category wise details of the owncapital and bank loan are detailed in Annexure V.

-: TERM LOAN:-

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The promoters proposes to avail a term loan of Rs. 5,20,000 from thebank against the total requirement of Rs. 8,00,000. The term loan willbe repaid to the bank as 60 equal monthly installments after the first 3months repayment holidays. The interest on term loan is assumed as14% per annum. The details of repayment of bank term loan ands

computation of interest on term loan are given in Annexure VI.-: ESTIMATED SALES :-

The unit will carry out the manufacturing of the mentioned items usingthe maximum availability of manpower, tools, etc. The products will besold at moderate rates to capture the market nullifying the competitionin the field. As the rates will be different for the various products, nofixed selling rate for them can be assumed and so a total sales value iscalculated. The details of the marketing with 100% capacity utilisationis given in Annexure VII.

-: UTILITIES :-a. Power :- The unit will need power only in single phase as shownAnnexure VIII.b. Fuel :- The unit will need no special fuel.c: Water :- The water needed for the domestic and industrial purposesis available at the site.

:-ASSUMPTIONS MADE IN THE PROJECTS :-a. A provision of Rs. 5,000 is made in the project towards the annualrepairs and maintenance of the tools & furniture, being 5% of the costof these assets.b. A provision Rs. 5,000 is made in the project towards the annualinsurance charges of fixed assets including current assets.c. Depreciation on tools & furniture etc. is worked out at the rate of 20%, i.e. Rs. 18,000 and is shown in the project in the straightcalculation method.d. The administrative overheads per year is given in Annexure IX.e. A provision of 2% of the total annual sales is made in the projecttowards the selling expense including discount to customers andpublicity charges.

-: WORKING CAPITAL REQUIREMENTS :-The working capital needed for the unit in first year with 70% capacityutilisation will be Rs. 7,00,000. This amount will be increasedproportionally every year as the capacity utilisation increases. Theworking capital is calculated for one cycle of operation in a year. Thedetails are given in a year. The details are given in Annexure X.

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ANNUAL REQUIREMENTS OF RAW MATERIALS

No. Item Qty. Rate (Rs.) Amount (Rs.)1. Various wood roots 12 ld. 50,000 6,00,0002. Other items incl.

Sand paper, polish,Fevicol, glass, etc. 1,00,0003. Flower cloth

(a) ” 1,200 kg. 450 5,40,000(b) ” 1,200 kg. 425 5,10,000(c) ” 600 kg. 350 2,10,000(d) ” 600 kg. 275 1,65,000

4. Flower leaf (a) ” 360 kg. 525 1,89,000(b) ” 1,200 kg. 450 5,40,000(c) ” 48000 kg. 01.40 67,200

(d) ” 600 kg. 400 2,40,0005. Flower thongal(a) ” 360 kg. 550 1,98,000(b) ” 360kg. 500 1,50,000(c) ” 360 kg. 450 1,62,000(d) ” 600 kg. 350 2,10,000

6. Flower Star Cup 600 kg. 200 1,20,0007. Flower Inter Cup 600 kg. 200 1,20,0008. Leaf cup 600 kg. 350 2,10,0009. Leaf Pin 960 kg. 200 1,92,00010. Chain 600 kg. 180 1,08,00011. Basket

(a) ” 24,000 pc 14 3,36,000(b) ” 24,000 pc 10.25 2,46,000(c) ” 48,000 pc. 04.25 2,04,000

12. Cup(a) ” 24,000 pc 07 1,68,000(b) ” 24,000 pc 02.25 54,000(c) ” 24,000 pc 03 72,000(d) ” 24,000 pc 02 48,000

13. Plaster of Paris 480 bg. 340 1,63,20014. Thermocol, gum, sticker, etc. 1,00,000

Total 60,52,400Say 60,52,000

ANNEXURE IIIMANPOWER REQUIREMENTS

No. Category Numbers Salary (Rs) Total (Rs)

1. Manager 1(promoter) 2,000 2,000

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CALCULATION OF POWER CHARGES

Connected load : Single phaseMonthly power consumption :Monthly power charge :

Add fixed charge :Total monthly power charge :Total annual power charge :Say :

ANNEXURE IXADMINISTRATIVE OVERHEADS

No. Item Amount (Rs.)1 Printing and stationery 6,0002. Postage and telephone 18,000

3. Misc. expense 5,0004. Rates & taxes 2,0005. Electricity 9,000

Total 40,000

ANNEXURE XWORKING CAPITAL REQUIREMENT

1st year A. Capacity utilization 70%B. Sales 50,75,000C. Cost of raw materials 42,36,000D. Cost of production 46,96,000E. Current assets1. 1 month stock of raw materials 3,53,0002. 3 days value of working process 45,0003. 1 Week value of finished goods 91,0004. 2 Weeks debit (at cost) 2,11,000Total (E) 7,00,000

ANNEXURE XIPROJECT PERFORMANCE & PROFITABILITY STATEMENT

Break even point : 23%

Break even sales : Rs. 11,67,000

Capacity Utilization : 70%

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4. Profit before interestand taxation - 299 484 562 634 634

5. Depreciation - 18 14 12 9 7Total (A) 800 317 498 574 643 641

B. Out flow

1. Capital expenditure 90 - - - - -2. Decrease in TL - 78 104 104 104 1043. Increase in WC - 700 100 100 100 -4. Interest - 73 62 14 33 185. Income tax - 68 127 154 180 1856. Preli. Expense 10 - - - - -Total(B) 100 919 393 372 417 307C. Opening balance - 700 98 203 405 531D. Surplus (A-B) 700 602 105 202 226 334E. Closing balance 700 98 203 405 631 965

ANNEXURE XIIIPROJECTED BALANCE SHEETRs. in 1,000

No. Ptlrs. 1 st 2nd 3rd 4 th 5 th

Year year year year yea r A. Liabilities1. Share capital 80 80 80 80 802. Reserve & Surplus 158 453 814 1235 16663. Bank loan 520 442 338 234 1304. Subsidy 200 200 200 200 200Total (A) 958 1175 1432 1749 2076B. Assetsa. Gross fixed assets 90 72 58 46 37b. Less depreciation 18 14 12 9 71. Net fixed assets 72 58 46 37 302. Current assets 700 800 900 1000 10003. Preli. Expense 10 10 10 10 104. Cash & bank balance 176 307 476 702 1036Total (B) 958 1175 1432 1749 2076

PROJECT PROPOSAL FOR

MANUFACTURING BAMBOO CURTAINS

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Under theMultipurpose Job Club Scheme

of Govt. of Kerala

ByURAVU BAMBOO CLUB

THRIKKAIPETTA.P.O.WAYANAD 673577Phone: 09961621617

MULTI PURPOSE SERVICE CENTERS & JOB CLUB SCHEME

Project Report

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1. Nature of the Project : Manufacturing(Manufacturing/Service/Trade)

2. Project Name : Uravu Bamboo Club

3. Land & Building (Own/Rented) : Taken on leasea) Location : Thrikkaipetta

b) Area : 5 cents

c) If the land is own, value thereof : Not applicable

d) If rented, monthly rent : Lease @ Rs. 24000/- per annum

5. a) Name of Taluk : Vythiri

b) Name of Block : Kalpetta

c) Name of Grama Panchayath/Municipality : Meppadi Grama Panchayath

d) Name & No. of Ward/Division : Ward No. 1

6. Name & telephone No. of the ServiceCentre to which the Job Club is affiliated :

7. Name of the Bank from which the JobClub proposes to avail loan : Canara Bank, Kalpetta branch

8. Details of the proposed project in brief :

The project proposes to engage in the manufacture and marketing of a variety of eco-friendly bamboo curtains by 5 trained artisans in Thrikkaipetta village,Meppadi Grama Panchayath. This product line has a growing market at the local,national and international levels. Considering the fact that currently there are nomajor players in the sector and the competition is minimal, the prospects for growth are excellent.

The project will be located in a premise taken on lease at Thrikkaipetta inMeppadi Panchayath. The raw materials required are available in plenty in the

locality. Proximity to the source of raw material would be a major advantage of the proposed venture, considering the fact that bamboos and reeds are bulky innature. The technical know-how and facilities available at the CFC of M/s UravuIndigenous Science & Technology Study Centre, Thrikkaipetta can be availed atreasonable costs. The services of M/s Uravu Eco Links Ltd, a company engagedin the marketing of eco-friendly products made by the job club. A tie-up hasalready been established with the company.

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All the 5 members in the Uravu Bamboo Club are trained artisans having ampleknowledge and experience in the production of a variety of bamboo productsincluding craft items, bamboo curtains and bamboo mat based utility products.All the members would be workers in the proposed venture. It is intended to hiremore workers in addition to the members of the Club as and when necessary so

that economies of scale in operation costs can be brought in.

9. Total Project Cost (10+11=9) : Rs. 8,00,000.00

10. Fixed Cost

1. Land & Building (on lease) : Rs. 1,20,000.002. Machinery & equipments : Rs. 91,700.003. Other assets : Rs. 21,000.004. Other items

Contribution to Credit Guarantee : Rs. 12,000.00Investment Fund (1.5% of projectcost- Rs. 800000 x 1.5%)

Total fixed cost : Rs. 2,44,700.00

11. Working Capital (for 3 months) :

1. Rawmaterials : Rs. 3,15,000.00

2. Wages : Rs. 1,90,500.00

3. Other expensesa) Rent : Nilb) Electricity : Rs. 3,000.00c) TA/DATED : Rs. 7,500.00d) Marketing expenses : Rs. 30,000.00e) Miscellaneous expenses : Rs. 9,300.00

Total Working Capital for 3 months : Rs. 5,55,300.00

12. Anticipated annual turnover : Rs. 25,20,000.00

13. Anticipated net profit/ : Rs. 1,28,700.00 (5.1%)net profit percentage

14. Sources of fund :a) Total Project Cost (b+c+d) : Rs. 8,00,000.00b) Bank Loan : Rs. 5,40,000.00c) Subsidy from Government of : Rs. 2,00,000.00

Kerala through the Multi PurposeJob Club Scheme

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No.1. Land & Building (on lease for 5 years @ Rs.

24000 p.a)1,20,000.00 1,20,000.00

2. Machinery, equipments & toolsa) Looms-2 nos x @ 20000/-

b) Tank & other facilities for chemical treatment of raw materialsc) Tank for colouring raw materialsd) Hand tools (knives of different sizes,

hack saws, width sizers, gauges,equipment for blowing etc.)

40,000.00

30,000.00

5,000.0016,700.00

91,700.00

3. Other assets-Furniture 21,000.00a) Wooden Stools/benches with metal frames 4,000.00b) Office table-1 no. 3,000.00c) Office chairs-3nos. 3,000.00

d) Steel racks-4nos. 6,000.00e) Steel almirah-1 no. 5,000.00

4. Other items 12,000.00Contribution to Credit GuaranteeInvestment Fund-1.5% of total project cost-Rs. 800000 x 1.5%

12,000.00

Total Fixed Cost 2,44,700.00

Annexure-II

2. Estimated Working capital (for 3 months)

Sl.No.

Project components Amount(Rs.)

Amount(Rs.)

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1. Cost of Raw materials - @ Rs. 3000/- per workers per month.(3000x3x15 persons)Cost of Consumables @ Rs. 60000/- per month(Rs. 60000x3 months)

1,35,000.00

1,80,000.00

3,15,000

2. Salary & Wages-1. Skilled workers-@Rs. 120 per day-(15 personsxRs.120x75 days)

2. Weavers-@Rs. 250/- per day(2 persons x Rs. 250 x 75 days)

3. Salary of Supervisor @ Rs. 6000/-Per month (Rs. 6000 x 3)

1,35,000.00

37,500.00

18,000.00

1,90,500.00

Other expenses- 49,800.001. Rent -2. Electricity-Rs. 1000 x 3 months 3,000.003. TA/DATED @ Rs. 2500/- p.m

(2500 x 3)

7,500.00

4. Marketing expenses @ Rs. 10000 per month (Rs. 10000 x 3)

30,000.00

5. Miscellaneous expenses@ 3100/- per month (Rs. 3100 x 3)

9,300.00

Total working capital for 3 months 5,55,300.00

Note:

1. Not less than 15 skilled workers would be engaged for the primary processing

of bamboo, i.e., cutting, splitting, slivering and finishing of slivers. Skilledpersons will be hired as and when needed on daily wage/piece rate basis.

2. 2 skilled weavers would be engaged on daily wage basis for weaving thecurtains.

3. One of the members of the club would be entrusted with supervision andcoordination of activities-production and delivery of the products, day to daymanagement- etc. on a monthly salary basis.

PROJECT REPORT

A. NAME & ADDRESS ATHIRA DAIRY FARM,OF THE UNIT : ANAKKAL,

MALAMPUZHA,PALAKKAD

B. NAME & ADDRESS Mr. UNNIKRISHNAN.A,OF THE PARTNERS : S/0 Appu,

104



KOCHITHODU,ANAKKAL (post)MALAMPUZHA,PALAKKAD

Mr. NAZAR.H.,S/o HamzaKOCHITHODU,ANAKKAL (post)MALAMPUZHA,PALAKKAD

UNNIKRISHNAN.K.CS/o SanthaKOCHITHODU,ANAKKAL (post)

MALAMPUZHA,PALAKKAD

SHINSS/o SekharanKOCHITHODU,ANAKKAL (post)MALAMPUZHA,PALAKKAD

MANIKANDAN

S/o AppuKOCHITHODU,ANAKKAL (post)MALAMPUZHA,PALAKKAD

D. FUNDS REQUIREMENTS :a. CATTLE : 450000.00b. COW SHEAD 120000.00c. OTHERS : 30000.00

600000.00

E. SOURCE OF FUNDS:a OWN FUNDS : 100000.00b LOAN : 500000.00

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600000.00

ATHIRA DAIRY FARMANAKKAL, MALAMPUZHA, PALAKKAD

PROJECTED BALANCE SHEET(Rs. In ‘000’s)

CAPITAL & LIABILITIES 1 2 3 4 5

a: INVESTORS TEAM :Opening Balance 100 215 345 495 660

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Return from Sales 1200 1440 1560 16801800

B. COST OF PRODUCTION:

1. Cost of Materials 490 621 686 762 8382. Salaries & Wages 450 473 496 521 5473. Electricity Charges 5 10 15 18

204. Travelling Expenses 10 13 16 19

225. Telephone Charges 0 0 0 0

06. Preliminary &

Pre-operative Expenses Written off 0 0 0 0 07. Repairs & Maintenance 10 15 20 25 308 Miscellaneous Expenses 20 25 30 35

409. Depreciation 12 11 10 9

8

TOTAL 997 1167 1273 13891505

9. Less: Increase in Closing Stock 49 10 5 55

C. COST OF SALES 948 1158 1268 13841500

D. GROSS PROFIT 252 282 292 296300E. INTEREST ON LOANS 35 48 36 2412F. SELLING EXPENSES 12 14 16 1718G. NET PROFIT 205 220 240 255270H. DEPRECIATION ADDED BACK 12 11 10 98I. NET CASH ACCRUALS 217 231 250 264278J. REPAYMENT OF LOAN 100 100 100 100100K. NET PROFIT RATIO 17.08% 15.28% 15.38%

15.18% 15.00%

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B LOAN : 600000.00

700000.00AISWARYA VEGETABLE FARMING

THOOPPLLAM, MALAMPUZHA, PALAKKAD.

PROJECTED PROFIT AND LOSS ACCOUNT

Sl.No. PARTICULARS 1 2 3 4 5

Expected Capacity Utilisation 50% 60% 65% 70% 75%

A. INCOME:

Return from Sales 2050 2240 2350 2531 2712


1 Cost of Seeds, Fertilizers etc…., 790 830 960 1025 11252 Salaries & Wages 550 578 606 637 6693 Electricity Charges 5 10 15 18 204 Travelling Expenses 10 13 16 19 225 Telephone Charges 0 0 0 0 06 Preliminary & Pre-operative

Expenses Written off 0 0 0 0 07 Repairs & Maintenance 10 15 20 25 308 Miscellaneous Expenses 20 25 30 35 409 Depreciation 30 27 24 22 20

TOTAL 1415 1498 1672 1781 1925

9 Less Increase in Closing Stock 176 16 9 16 16

C. COST OF SALES 1239 1482 1663 1765 1909

D. GROSS PROFIT 811 758 687 766 803E. INTEREST ON LOANS 42 58 43 29 14F. SELLING EXPENSES 21 22 24 25 27G. NET PROFIT 748 678 620 712 762H. DEPRECIATION ADDED BACK 30 27 24 22 20I. NET CASH ACCRUALS 778 705 861 734 782J. REPAYMENT OF LOAN 120 120 120 120 120K. NET PROFIT RATIO 36.49% 30.27% 26.38% 28.13% 28.10%

L. DSCR (I+E)/(I+J) 5.06 4.29 5.54 5.13 5.92

110



Average DSCR 5.19

AISWARYA VEGETABLE FARMING

THOOPPLLAM, MALAMPUZHA, PALAKKAD.LOAN REPAYMENT SCHEDULE FOR 5 YEARS

-(Rs. In ‘000’s)PARTICULARS 1 2 3 4 5

Opening Balance 600 480 360 240 120

Interest on Loan 42 58 43 29 14

TOTAL 642 538 403 269 134

Loan Repayment

with Interest 162 178 163 149 134

Closing Balance 480 360 240 120 0

TOTAL 642 538 403 269 134

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PROJECT REPORT

A. NAME & ADDRESS : AISWARYA VEGETABLEFARMING ,OF THE UNIT THOOPPLLAM

MALAMPUZHA,PALAKKAD.

B. NAME & ADDRESS Mrs. PANKAJAMOF THE PARTNERS : W/o Mani

THOOPPLLAMMALAMPUZHA,

Mr. JAYANS/o VelayudhanTHOOPPLLAMMALAMPUZHA,

Mr.SUNILS/o ManiTHOOPPLLAMMALAMPUZHA,

Mr.PRAMODS/o SreedharanTHOOPPLLAMMALAMPUZHA,

Mr. JAGADHEESANS/o SwaminathanKARAKKAD,MALAMPUZHA.

Mrs. RATNAMW/o KrishnaswamiKUNIPULLY, KOTTEKKAD,PALAKKAD.

D. FUNDS REQUIREMENTS:

d. WORKING CAPITAL : 330000.00e. LEASE RENT ADVANCE : 70000.00f. OTHER ASSETS : 300000.00

700000.00

E. SOURCE OF FUNDS:

A OWN FUNDS : 100000.00

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B LOAN : 600000.00

700000.00AISWARYA VEGETABLE FARMING

THOOPPLLAM, MALAMPUZHA, PALAKKAD.

PROJECTED PROFIT AND LOSS ACCOUNT

Sl.No. PARTICULARS 1 2 3 4 5

Expected Capacity Utilisation 50% 60% 65% 70% 75%

A. INCOME:

Return from Sales 2050 2240 2350 2531 2712


1 Cost of Seeds, Fertilizers etc…., 790 830 960 1025 11252 Salaries & Wages 550 578 606 637 6693 Electricity Charges 5 10 15 18 204 Travelling Expenses 10 13 16 19 225 Telephone Charges 0 0 0 0 06 Preliminary & Pre-operative

Expenses Written off 0 0 0 0 07 Repairs & Maintenance 10 15 20 25 308 Miscellaneous Expenses 20 25 30 35 409 Depreciation 30 27 24 22 20

TOTAL 1415 1498 1672 1781 1925

9 Less Increase in Closing Stock 176 16 9 16 16

C. COST OF SALES 1239 1482 1663 1765 1909

D. GROSS PROFIT 811 758 687 766 803E. INTEREST ON LOANS 42 58 43 29 14F. SELLING EXPENSES 21 22 24 25 27G. NET PROFIT 748 678 620 712 762H. DEPRECIATION ADDED BACK 30 27 24 22 20I. NET CASH ACCRUALS 778 705 861 734 782J. REPAYMENT OF LOAN 120 120 120 120 120K. NET PROFIT RATIO 36.49% 30.27% 26.38% 28.13% 28.10%

L. DSCR (I+E)/(I+J) 5.06 4.29 5.54 5.13 5.92

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Average DSCR 5.19

AISWARYA VEGETABLE FARMING

THOOPPLLAM, MALAMPUZHA, PALAKKAD.PROJECTED BALANCE SHEET

(Rs. In ‘000’s)

CAPITAL & LIABILITIES 1 2 3 4 5

a: INVESTORS TEAM:

Opening Balance 100 728 1286 1786 2378Add: Net Profit 748 678 620 712 762Less: Drawings 120 120 120 120 120

728 1286 1786 2378 3020

b: SECURED LOANS:

Loan 480 360 240 120

TOTAL (a+b) 1208 1646 2026 2498 3020

ASSETS & LIABILITIES 1 2 3 4 5

a: FIXED ASSETS:

MachineriesOpening Balance 300 270 243 219 197Less: Depreciation 30 27 24 22 20

270 243 219 197 177b: CURRENT ASSETS:

Lease Rent Advance 70 140 210 280 350Closing Stock 176 192 201 217 233Sundry Debtors 534 911 1233 1637 2087Preliminary & Pre-operative Expenses 0 0 0 0 0Cash & Bank Balances 158 160 163 167 173

938 1403 1807 2301 2843

TOTAL (a+b) 1208 1646 2026 2498 3020

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PROJECT REPORT FOR STARTING

A TIMBER UNIT BY HASEEN GROUPPUDUNAGARAM FOR PROCURING, MAKINGAND MARKETING OF TIMBER PRODUCTS.

1. INTRODUCTION

The main aim and purpose of setting up this Timber Unit is to buy directly from private parties

and from Government departments, trees, logs, etc. make contracts, fell, cut, transport from

different locations, and then size them to suit different needs and uses of clientele. The sized

wooden materials are marketed in different places in Kerala and also neighboring Southern States

of India.

There are very good demand for Teak, Jack, Mango, Vengai & Kazhani wood products in Andhra

Pradesh, Karnataka, and Tamilnadu besides Kerala.

As there are Saw Mills in the vicinity of this Unit, sizing or sawing of logs becomes easy, not

entailing any heavy capital expenditure to set up a compact/composite saw mill by the promoters

of this Unit. Only cutting and transportation charges are required to be met and the unit can start

functioning at the earliest possible time if and when decided upon to do so. And there is no

gestation period for the unit to make profits.

To cater raw materials to this Unit, Teak, Jack, Mango, Vengai, Kazhani and other local varieties

of trees, /woods are available in plenty throughout Kerala – either from the private parties or from

the forest department of the state government or from the Highways department..

Though the need for special purpose wooden planks, door frames, window frames, reapers, lofts,

rafters and shafts are required by different customers in different sizes/measurements viz,

Builders and Industrial establishments, all of them can be made available at short notices because

of availability of these raw materials.

116



Besides it is the proposal of the promoters of this unit to engage in the manufacture of furniture

items also which are in good demand. With people possessing wealth and their life style

becoming sophisticated and willing to spend large amount of money on interior decoration and

furnishing, latest in design and artful sculpting, furniture items made of good quality wood are

always a fascination of the buyer. As a result the prospects for this Unit is immense.

Except for making of furniture items, no skilled workmen are required to handle, as the logs are

cut and made to sizes by the Saw Mill as per the demand.

2 – Non-Recurring Expenditure

An extent of about 2000 sq.ft. is enough initially for the storage andstacking of sized wood items, including open space for keeping thelong and big logs and premises can easily be arranged on rent.(a) Yard 2000 sq.ft. Rent per month

Rs.1,000/-

(b) Equipments/Materials required

1 – Hacksaw Blades (Big) - 3 nos. @ Rs.3000 each – Rs.9,000

(to cut trees)

2 – Big Rope - 3 nos. @ Rs. 1000 each –Rs. 3,0003 – Axe - 5 nos. @ Rs. 500 each – Rs. 1,5004 – Kodali - 3 nos. @ Rs. 250 each – Rs. 7505 – Koduval - 3 nos. @ Rs. 250 each – Rs. 750

Total: Rs.15,000

3 – Recurring Expenditure:

(i) Purchase of Timber(@5,00,000 per quarter Rs.

20,00,000

(ii) Manpower requirement

No. Rate Daily Annual (300 days)

117



For cutting trees 5 250 1250 Rs.3,75,000at site

At the yard 2 150 300 Rs. 90,000

Rs. 4,65,000(iii) Other Expenditure:

Miscellaneous 50 15,000Transportation of Timber Rs.

1,00,000Handling charges Rs.

1,00,000

Rs.2,15,000

4 – Total of Recurring Cost/year i+ii+iii = Rs.26,80,000

5 – Work Process:

The contracted/bought out standing trees are cut at different sites intotransportable sizes as logs and brought to Saw Mill. Then these logsare, as the demand exist, sawed into different sizes and products andbrought to the Unit’s yard for sale.

6 – Working Capital Requirements (Annualized)

a) – Purchases – wood Rs. 20,00,000b) – Purchases of equipments Rs. 15,000c) – Working expenses Rs. 6,80,000

Rs. 26,95,000

7 – Product – MixOut of the trees/wood/timber purchased, cut, transported and sizedand sold, the small cut pieces are used for making boxes, packingcases and the waste materials are sold as firewood.

118



8 – Project Cost

(a) Yard & Shed 2000 sq.ft. @ 1000/pm - Rs.12,000

b) Working Capital for a year - Rs.26,95,000

Rs. 27,07,000

9 – Means of Finance (Initially for 3-months)

a) – Promoters’ contribution - Rs. 1,00,000b) – Term Loan from Bank - Rs. 5,00,000

Rs. 6,00,000

10 – Turnover

A) Against purchase of Trees/wood worth Rs. 5,00,000/- everyquarter the annual income from finished products including cut-pieces used in making boxes etc. and the rest used as fire-

wood by buyers: Rs. 36,00,000B) Cost of Production (annualized)

1 – Raw Materials (wood) Rs. 20,00,0002 – Cutting charges at site

(300 days in a year)5 workmen Rs. 1250/day & 2Workmen at the yard 300/day Rs. 4,65,000

3 – Miscellaneous expensesRs. 50/- per day – 300 days Rs. 15,000

4 – Transportation & Handling Rs. 2,00,0005 – Interest on Term Loan @ 14% Rs. 70,000

Rs. 27,50,000Profit (A)- (B) - Rs. 36,00,000

119





PROJECT REPORT FOR STARTING A UNIT OFM/S AISWARYAM MANGOES

FOR FARMING AND APCKING OF TASTY MANGOES

I – INTRODUCTION (Scope & Marketing)

The proposal is to put up a Unit to Procure Farm freshMangoes from the farmers of Muthalamada Panchayath andsurrounding areas and marketing the fruits through the Mangoe &Fruit agents at Delhi, Ahamedabad, Indore and Chennai.

Muthalamada Grama Panchayat in Palakkad District is oneof the large Mango production areas in Kerala. The geographicalfeatures (vegetation) of this place is excellently suited for Mango

farming. The Mango season starts at this place, Muthalamada, fromwhere Mangoes of different varieties are sent to different parts of India, well ahead of other mango producing centers. There are anumber of mango cultivators. About 40% of the area of thePanchayath constitute mango farms. Muthalamada mangoes arevery famous through out the country for their taste and enjoys aspecial market.

The Season at Muthalamada is from December to April.Therefore, it is not a wonder that Rs. 10 Crore worth of mangoes areproduced, packed and sold every-year by the Muthalamadafarmers. About 2000 people are engaged as labourers and

121







3. Manpower requirement:- per day – 5 x 200 = Rs.1,000

1000 x 150 days = Rs.1,50,000

Total of 1+2+3 above = Rs.

6,63,500Means of Finance

1 – Our Contribution = Rs.66,350

2 – Term loan for working capital 90% = Rs.5,97,150

Total : = Rs.6,63,500

Cost of production and profitability for a normal season’soperation:

Expenditure per box. Each box carry 5 kgs. Mangoes.

Mango cost @ Rs. 15/- (average) per kg. 5 x 15 = Rs.75Packing charge @ Rs. 5/- per box = Rs.5Price per carton @20/- = Rs. 20Hay for packing @ 3/- = Rs. 3Transportation charges @ 27/- = Rs.27

Total: = Rs.130

124





IDUKKI DIST

(National Employment Service Multipurpose JobScheme)

(Food Processing Unit)

PROMOTERJoint Promoters

under NationalEmployment Service

Multipurpose Job Club Scheme1. Shyny Roy2. Sujatha T.N

3. Lissiyamma.J

4. Jancy George

PROJECTS DETAILS

126



1 Promoters Shyni RoySujatha T.NLissiyamma.JJancy George(Annexure A)

2 Location At.Anakkara Junction3 Project Food Processing unit4 Products Rice powder, Wheat powder, Chilly

Powder, Coriander Powder, curry powderand coffee powder

5 Project cost 10 lakhs6 Means of finace Bank loan : 7.20

Subsidy : 2.00Promoters Enquity : 80

7 Subsidy scheme National Employment Service

Multipurpose Job Club scheme(Govt. of Kerala)8 Bank loan 70% of the project cost is financial by

bank loan9 Gurantee Bank loan is guranteed by credit

gurantee fund trust corporation

10 Gurantee First year 1.5 % of project cost Secondyear onward .75% of project cost

11 Turnover first year Rs.247 lakhs12 Gross profit estimated 13%13 Net profit estimated 5%14 Average D.S.C.R 5.515 Period of loan 5 years16 Employment 11 persons (full time)

CONTENTS

1. INTRODUCTION2. LOCATION3. PROJECT4. SUBSIDY5. WORKING CAPITAL REQUIREMENT6. EMPLOYMENT7. BANK LOAN

127



8. MARKETING ARRANGEMENT9. FEASIBILITY10. PROJECT COST11. MEANS OF FINANCE12. WORKING OF ECONOMICS

13. PROFITABILITY STATEMENT14. CASH FLOW STATEMENTR15. BALANCE SHEET

ANNEXURE

A. PROMOTERS DETAILSB. PRODUCTION DETAILSC. MACHINARY & EQUIPMENTSD. WAGES & SALARIES

E. PRODUCTION COSTF. LOAN REPAYMENTG. WORKING CAPITALH. SALES DETAILSI. D.S.C.R ANALYSIS

1. INTRODUCTION

The promoters are unemployed women who are jointly decidedto start one food processing unit at Anakkara. The land for theconstruction of work shed will be taken on lease. Building constructionand cost of plant and machinery will be financed by bank loan.

2. LOCATION

128



The Food unit will be located in Anakkara junction;Chakkupallom Panchayat Idukki Dist.

3. PROJECT

The proposed unit will produce Rice powder, Wheat powder,Chilly powder, Coriander powder, Curry powder and coffee beans canbe locally purchased. After proper cleaning this will be processed atthe unit and packed in convenient packets and taken to market. Themarketing is mainly through wholesale and retail traders in Idukki,Pathanamthitta and Ernakulam Districts.

4. SUBSIDY SCHEME

The project is financed by bank loan and by promoters equallyand subsidy provided by National Employment Services Multipurpose

Job scheme. There will be Rs.2 lakhs subsidy provided by the schemeand the same can be utilized for the project financing.

5. WORKING CAPITAL REQUIREEMENT

The major component of the working capital requirements is thestock of raw materials and finished goods. A detailed working isattached in Annexure. G

6. EMPLOYMENT

The proposed unit provided direct employment to 11persons. There will be 3 operators to look after the productionprocess. The other 6 women workers will take care of the packing andforwarding activities. (See annexure D)

7. BANK LOANThe Bank loan is primarily secured by the hypothecation of

assets and stock in trade, The loan, The loan will be guaranteed by thecredit guarantee fund trust. For that the unit has to pay yearlypremium at the rate of 1.5 % of the project during first year and0.75% after the first year.

129



8. MARKETING ARRANGEMENT

The products are mainly marketed through the wholesale andretail traders over, the three District; Idukki, Pathanamthitta andErnakulam. Weekly the sale van (on hire) will have to supply the

products to the dealers over the Districts.9. FEASIBILITY

The profitability and cash flow analysis shows that this unit isfinancially viable; if the projected production and sales targets areachieved the unit can succeed very well.

10. POROJECT COST

1. Land on Lease2. Building as per estimate 100.000.003. Lease security (land) 50,000.00

130





1. Lease rent 0.602 Loan interest T/L 0.47

W.C.L 0.533. Selling & distribution expense 10.004. Credit guarantee fee 0.15

5. Rates & Taxes 5.006. Advertisement 2.007. Office expense 1.008 Sundry expense 2.00

------- 21.75--------

Net surplus before Dep. & Tax 11.75=====

13. PROJECTED PROFITABILITY STATEMENT

INCOME Year1 Year 2 Year3 Year4 Year5Sales 247.00 247.00 272.00 272.00 272.0

0Less cost of sales 213.50 213.50 235.00 235.00 235.0

0Gross margin 33.50 33.50 37.00 37.00 37.00Less adm.exp other 20.75 20.75 23 23 23

132











ANNEXURE –C

MACHINERY EQUIPMENTS

1 Pulvarloor Rice 1 No. 15,000.002 ” Curry powder 1 No 15,000.003 Coffee Roster 1 No. 50,000.004 Rice Roster 1 No. 50,000.005 Vibrator 1 No 20,000.006 Sealing machine 10 Nos 20,000.007 Weighing Balance electronic 5

Nos.50,000.00

8 Electrical fitting with 10 HP motor 30,000.009 Other Utencils (vessels etc. 25,000.00

Total 275,000.00

137



ANNEXURE – D

WAGES & SALARIES

SlNo

Designation Nos. Salary/Wages Total

1 Operators 3 4500/m 162.000.00

2 Helpers 6 3000/m 216.000.00

3 Manager CumAccoun.

1 3000/m 36.000.00

4 Watcher 1 3000/m 36.000.00Total 11 450.000.00

138



ANNEXURE –E

PRODUCTION COST (per Kg)

Sl

No

Product Raw

Materials

Labo

ur

Producti

on Loss

Overhe

ad

Packi

ng

Total Sale

s

Marg

in1 Rice

Powder12.5 1 2 2 1 18.5 20 2.5

2 Wheatpowder

12 1 2 2 1 18 19 1

3 Chillypowder

50 1 10 1 10 72 80 8

4 Coriander 20 1 4 1 10 36 45 95 Curry

powder40 1 8 2 10 61 70 9

6 Cofeepowder 75 1 15 4 5 100 120 20

Note:1. Overheads Include s

a. Current chargeb. Loading & unloadingc. Transportationd. Purchase expensee. Repairs & maintenancef. Oil and

II Production Loss One Kg raw material gives only 805 output

139





ANNEXURE-G

WORKING CAPITAL REQUIREMENT

A Raw material stock

Rice 10 ton 125.000.00Wheat 5 ton 60.000.00Chilly 1 ton 40.000.00Coriander 1 ton 20.000.00Spices 500kg 150.000.00

----------------

445.000.00B Finished Goods

Rice powder 1000Kg 19.000.00Wheat Powder 1000kg 48.000.00Chilly powder 500kg 36.000.00Coriander powder 500kg 18.000.00Curry Powder 500kg 30.500.00Coffee powder 1000kg 105.000.00

-----------------

226.000.00

C Receivable-7 days sales600.000.00

D Overheads 15 days 54.000.00

Total1,325,500.00

E Less Sundry creditors 775.500.00

141



F Net working capital requirement 550.000.00

============

ANNEXURE-HSALES (Capacity 50 to 60%)

KG Rate Total Cost of sales

Margin

1 Rice Powder 116000 20 23.20 21.48 1.742 Wheat powder 7000 19 13.30 12.60 0.703 Chilly 73700 80 58.96 53.06 5.904 Coriander 73700 45 33.16 26.53 6.635 Curry powder 45000 70 31.50 27.456 Cofee powder 72400 120 86.88 72.40 14.48

Total

247.00 213.50 33.50

142



ANNEXURE -1

D.S.C.R ANALYSIS

INFLOWS Year 1 Year 2 Year 3 Year 4 Year 5Net surplus 7.86 7.91 8.99 9.01 9.13Add depreciation 0.37 0.33 0.30 0.27 0.24Add interest 1.00 0.91 0.81 0.72 0.63Total 9.25 9.15 10.10 10.00 10.00

OUTFLOWS

OUTFLOWSLoan interest 1.00 0.91 0.81 0.72 0.63Loan installment 0.68 0.68 0.68 0.68 0.68

Total 1.68 1.59 1.49 1.40 1.31D.S.C.R 5.50 5.60 6.50 7.00 7.50Average D.S.C.R 6.4

143



PROJECT REPORT FOR MOBILESPOT - MALAPPURAM

1. CONSTITUTION & MANAGEMENT M/S MOBILE SPOT, Malappuram is a proposed cell phone

sales cum service shop at down-hill Malappuram it is a partnershipconcern consisting of the following members.

1. SAINULABIDEENThottapalli House,Melmuri (PO)Malappuram

2. MOHAMMEDYOUNUSThottapalli House,Melmuri (PO)Malappuram

3. MOHAMMED ILYASThottapalli House,Melmuri (PO)Malappuram

BADARUHEEN.TThottapalli House,Melmuri (PO)Malappuram

Sri. Sainul Abideen will be the leader of the shop. He has got deepknowledge in the electronic field, especially in the cell phone industry.He will also employ other competent personnel for the servicing of thephones. So the shop will surely get good monthly income.

2. SCOPE OF THE SHOP Mobile phone has become a must for every one in now a day

especially in Malappuram district. With day to day development in thecell phone industry it is becoming cheaper compared to the landphones. Marketing of the mobile phones is an easy job. The onlyproblem in the field is the competition exists in the market. Sri. SainulAbideen believes he can overcome the situation too, without mucheffort.

3. LOCATION OF THE SHOP The shop M/s Mobile Spot is proposed to locate in building No. 17/437A-2, A-3 of Malappuram municipality at Parayath building, own-hill,Malappuram. The rented room has got 1000 sq. ft. space for both thesales and servicing of mobile phones.

144



4. INFRASTRUCTURAL FACILITIES All the members are well known persons in Malappuram, coming froma well known far. So they expect a good sale in the shop. More overthe shop has also got the dealership of wide range of various companycell phones so the shop expects to overcome the competition in themarket easily.

THE OTHER DETAILS OF THE PROJECT IS AS FOLLOWS:-

I. Fixed Capital :-

1. Land & Building (Rented @ Rs. 4000/ month) -

48,000.002. Room deposit for size of room 1000 sq.ft. -1,00,000.00

3. Room furnishing including electrical fittings -1,00,000.00

4. Servicing equipments including computer -50,000.00

Total2,98,000.00

II. Materials 1. Nokia brand mobile phones of various models -

2,20,000.002. LG brand mobile phones of various models -

1,10,000.003. Samsung brand mobile phones of various models -80,000.004. BSNL brand recharge coupons -60,000.005. Idea brand recharge coupons -45,000.006. Vodafone brand recharge coupons -35,000.007. Reliance brand recharge coupons -45,000.008. TATA brand recharge coupons -15,000.00

145





feasible, financially sound and economically viable. Equalresponsibility of repayment of loan to all four members.

aÄ«n-]À¸kv kÀÆokv sktâgvkv & tPm_v ¢ºv ]²Xnlhmbv sNcp¸p \nÀ½m-Ww, tImX-aw-Kew

t{]mPIvSv dnt¸mÀ«v1. t{]mP-IvSnsâ kz-`mhw :(h-y-h-kmbw/kÀÆokv/_nkn-\-Êv) : hy-h-kmbw

2. t{]mP-IvSnsâ t]cv : sNcp¸p\nÀ½mWw

3. `qan (k-z´w/hmS-I) : hmSI

(F) Øm\w :(_n) hnkvXoÀ®w :(kn) k-z-´-sa-¦nÂ aXn-¸p-hne :

4. sI«nSw (k-z´w/hmS-I) : hmSI

(F) Xd hnkvXoÀ®w : 1000 CPT(_n) \¼À :

147



(kn) kz-´-sa-¦nÂ aXn-¸p-hne :(Un) hmS-I-sb-¦nÂ amk-hm-SI : 2000

5. kwcw`w Bcw-`n-¡m-\p-t±-in-¡p¶

(F) Xmeq¡v : tImX-aw-Kew(_n) t»m¡v : tIm-X-aw-Kew(kn) Xt±-i-`-c-W-Øm-]\w : ss]t§m-«qÀ ]©m-b¯ v(Un) hmÀUnsâ/Unhn-jsâ

t]cpw \¼cpw : III- mw hmÀUv

6. tPm_v ¢ºv A^n-en-tbävsNbvXn-«p-ff kÀÆokv skâ-dnsât]cpw \¼cpw : P³ in£¬ k³Øm³

7. kÀÆokv Gcnb _m¦nsâ/hmbv]FSp-¡m-\p-t±-in-¡p¶ [\-Im-cy bqWn-b³ _m¦v

Hm^v C´-y,Øm]-\-¯nsâ t]cv : IS-hqÀ {_m©v

8. ]²Xn {]hÀ¯\ coXn(Np-cp-¡-¯nÂ) :

9. ]²Xn sNehv/BsI apS¡v apXÂ :(10 + 11 = 9 )

10. Ønc aqe-[\w

1. Øehpw sI«n-Shpw :2. b{´-km-a-{Kn-Ifpw

A\p-_Ô D]-I-c-W-§fpw : 75000/-3. aän-\-§Ä : 125000/-

BsI : 200000/-

11. {]hÀ¯\ aqe-[\w

1. Akw-kvIrX hkvXp-¡Ä : 150000/-2. sXmgn-em-fn-Ifpw thX-\hpw : 20000/-3. aäv sNe-hp-IÄ

148





To Salary

” Rent

” Labour charges

” Postage & Telephone

” Electricity charge

” Transporting charge

” Packing & Loading

” Travelling expense

” Interest & Bank charge

” Advertising

” Sundry expenses

” Net Profit

By gross profit15000

9000

60000

6000

5000

20000

10000

15000

15000

20000

10000

75000

260000

260000 260000

Projected Balance Sheet as on 31-03-08

Liabilities Assets

Working Capital frommember Add Net Profit

Less drawings bymembers

50000

75000

125000

60000

Fixed AssetsMachine 4 NosToolsPlumbing & ElectricalFittingFurniture & Fittings

4000015000

20000

100000

150



“ Loan Repayment

By Loan

15000

50000

400000

Computer, Furniture, etc.Room SecurityCurrent AssetsStock on 31-3-08Sundry Debtors

Cash in hand

20000

145000100000

10000

450000 450000

Income & Cost Details per month

Expenses

Raw materials Rs. 3200 x 25 days = 80000

(132 pair x 100 Rs.)Labour charge Rs. 800 x 25 days = 20000(4 Nos. x 200 Rs.)Other Expenses 35000

TOTAL 135000

SalesNo. of pairs manufactured

151

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